United States v. Davenport

484 F.3d 321 (2007)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

United States v. Davenport

United States Court of Appeals for the Fifth Circuit
484 F.3d 321 (2007)

Facts

Birnie and Elizabeth Davenport were sisters who lived together and comingled their financial assets. That is, the two sisters treated all their investments as equally owned by both of them and split all profits and losses equally on their individual tax returns during their lives. Shortly after Elizabeth’s death, Birnie transferred about 500 shares of stock in a drilling company to her nephew, Gordon Davenport (defendant), for about $800 per share. At around the same time, Birnie also made a gift of about 500 shares to her other nephew, Charles Botefuhr. When Birnie died, her estate calculated and paid its gift-tax liability for the transfer to Botefuhr at a value of $804 per share. On audit of Birnie’s estate, the Internal Revenue Service determined that the estate had undervalued the shares and assessed a deficiency. The estate challenged the deficiency in the United States Tax Court. The Tax Court determined that both Gordon and Botefuhr were transferees of stock properly valued at $2,000 per share and calculated a corresponding gift-tax deficiency against the estate. After the estate did not pay, the United States government (plaintiff) sued Gordon in district court, seeking to hold him liable for the tax as a gift donee. The government filed motions for summary judgment, arguing, among other things, that res judicata barred Gordon from contesting the value of the gift he received. The district court held that, because the Tax Court case focused on the value of Birnie’s estate’s gift-tax liability as a donor, res judicata did not preclude Gordon from contesting his liability as a donee. The government appealed.

Rule of Law

Issue

Holding and Reasoning (King, J.)

What to do next…

  1. 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 742,000 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
  2. 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 742,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 742,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership