From our private database of 30,500+ case briefs...
Randall v. Bailey
New York Court of Appeals
43 N.E.2d 43 (1942)
The Bush Terminal Company (Bush) and its subsidiary, Bush Terminal Buildings Company, purchased real estate assets in Brooklyn, New York. The corporations originally listed the value of the assets on their books equal to the cost they had paid to purchase them. The assets appreciated in value over the decades the corporations held them. To reflect this appreciation, the corporations increased the listed value of the assets on their books. Because of this increase, the corporations’ books showed that they held assets in excess of their liabilities. However, the corporations did not sell the assets; that is, the gains had not been realized. The corporations then paid dividends. The trustee of Bush (plaintiff) later sued the directors who had authorized the dividends (defendants) in order to recover the dividends. The trustee argued that it was unlawful to pay dividends from an unrealized appreciation of fixed operational assets. The lower courts found the dividends to be lawful, and the trustee appealed.
Rule of Law
Holding and Reasoning (Conway, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 551,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 551,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 30,500 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.