Document: 503 U.S. 47 112 S.Ct. 1021 117 L.Ed.2d 196 HOLYWELL CORPORATION, et al., Petitioners,v.Fred Stanton SMITH, etc., al. UNITED STATES, Petitioner, v. Fred SMITH Nos. 90-1361, 90-1484. Argued Dec. 4, 1991. Decided Feb. 25, 1992. Syllabus Petitioner debtors, four affiliated corporate entities and an individual, filed Chapter 11 bankruptcy petitions after one of them defaulted on a real estate loan. The Bankruptcy Court consolidated the cases debtors represented their own estates as in possession. Creditors approved plan that provided, inter alia, for placement debtors' property into trust appointment trustee to liquidate all distribute it creditors various estates. said nothing about whether had file income tax returns or pay any due, but United States did not object plan's confirmation. took effect October 1985. One return fiscal year ending July 31, 1985, including capital gains earned postbankruptcy sale certain properties its estate, requested respondent Smith, appointed trustee, taxes owed. Neither nor Smith succeeding years, which there was interest income. Over objections granted Smith's request declaratory judgment he no duty under Internal Revenue Code (Code) taxes. Both District Appeals affirmed. Held: is required by attributable both Gould. Pp. 52-59. (a) "assignee" "all" "substantially all" "property . corporation" therefore § 6012(b)(3) would have been assigned him. transferred undisputed meets usual definition word ordinary legal usage. Nothing limits persons who wind up dissolving corporation manage day-to-day business distressed corporation. 52-54. (b) With respect Gould's property, 6012(b)(4) make not, argues, because "fiduciary" "estate individual," "trust." Since declared established separate distinct vested simply substitute Gould fiduciary "estate." However, here—which described created express purpose liquidating distributing clearly fits description 26 CFR 301.7701-4(d). Moreover, when gave him powers consistent with 7701(a)(6) 301.7701-6. Respondents' argument must trust's Code's "grantor trust" rules rejected. In re Sonner, 53 B.R. 859, distinguished. Also rejected contention lacked sufficient discretion performing his duties be fiduciary, since satisfy regulations' fiduciary. 54-58. (c) Respondents also err asserting may ignore imposed does require Section 1141(a) Code—which states "the provisions confirmed bind creditor"—does preclude from seeking payment Even if binds claims arose before confirmation, regard post-confirmation claims. Cf. U.S.C. 101(10). Here, due prior appointment, merely same manner assignee trust. 58-59. 911 F.2d 1539 (CA 1990), reversed. THOMAS, J., delivered opinion unanimous Court. [Amicus Curiae information page 49 intentionally omitted] Justice THOMAS 1 These us decide part Code. 2 * Miami Center Limited Partnership borrowed money Bank New York (Bank) develop "Miami Center," hotel office building complex Miami, Florida. August 1984, loan, MCLP Holywell Corporation, Chopin Associates, Theodore B. each petitions. five cases. 3 Prior confirmation plan, See 1101(1). contained two principal assets: equity cash proceeds Washington, D.C., known Washington Properties. 4 other "Consolidated Plan Reorganization." give interests Properties, otherwise permitted remain business. Part V provided: 5 "1. A Trust hereby behalf Debtors individual designated Trustee ., limited to, [and] Proceeds hold, liquidate, such Property according terms this Plan. shall 'Miami Liquidating Trust.' "2. [A]ll right, title Property, Center, vest Trustee, without further act deed Debtors. ." App. 41. 6 It empowered "[m]anage, operate, improve, protect Property"; "[r]elease, convey, assign title, perform other, similar actions. Id., at 42. due. 7 10, court, immediately sold consideration cancellation Bank's claim. then distributed these assets third-party creditors. Corporation included asked federal years reinvesting proceeds. 8 December 1987, sought laws. opposed action. 85 898 (Bkrtcy.S.D.Fla.1988). Court, unreported opinion, Appeals, (CA11 States, No. 90-1484, petitioned writ certiorari. We review. 500 ----, 111 2234, 114 476 (1991). II 9 ties return. 6151(a) ("when person tax"). conclude case requires corporation." hold debtor's Finally, we excuse failing plan. A. 10 first consider trustee's debtors. provides: "(3) Receivers, trustees assignees corporations. 12 "In where receiver, Code, assignee, order court competent jurisdiction, operation law otherwise, has possession holds substantially corporation, being operated, form corporations are returns." 13 parties disagree "receiver," "trustee [i.e., Code]," "assignee." 6012(b)(3). Because do argue differ another characterization, decline qualify receiver trustee. 14 noted above, Trust. respondents dispute Webster's Third International Dictionary 132 (1986) (defining "one whom right legally transferred"); Black's Law 118-119 (6th ed. 1990) "[a] assignment made" "assignment" "[t]he transferring one's interest, rights"); cf. 301.6036-1(a)(3) (1991) "assignee benefit creditors" takes liquidates debtor distribution creditors). They argue, however, courts applied only situations winds see, e.g., First Nat'l Greeley, Colo. 86 938, 942 (CA10 1936), stands place management operating Louisville Co. Commissioner, 140 547, 548 (CA6 1944). cannot apply neither. find unpersuasive. 15 suggests proposed respondents. statute dissolution necessary; applies transfers property. corporation's transfer property; expressly "whether [the assigned] operated." Ibid. case. As B 16 next debtor, J. agree section 6012(b)(4), 17 "(4) Returns trusts. 18 "Returns trust, chapter made thereof." 19 argues join States' contend alternative insist acting either within meaning 6012(b)(4). Accordingly, they assert, individual. 20 originally served became 1107(a). At substituted alter estate. words, "an 11." points out explicitly provides administer see 1123(b)(3), prohibits substitution therefore, maintains 21 Whether permits new charge contends, believe mere occurred quoted "declared established" Rather, holding control arrangement. 1123(a)(5)(B) (authorizing "all more entities, organized plan"). 22 nonetheless, well way deny "trust" "fiduciary." Treasury Regulation states: 23 "Certain organizations commonly trusts treated purposes An organization will considered primary it, activities reasonably necessary with, accomplishment purpose." 301.7701-4(d) 24 description. describes entity 25 Respondent moreover, acted defines "guardian, executor, administrator, conservator, capacity person." 7701(a)(6). specifies: " 'Fiduciary' term occupy positions peculiar confidence toward others, trustees, executors, administrators. beneficial receives controls another, receivers." 27 definition. 28 raise conclusion. First, Trust's so-called §§ 671-677. note, particular, 1.677(a)-1(d) specifies "a grantor is, general, owner portion whose discharge obligation grantor." 1.667(a)-1(d) assert that, regulation, owns it. To support position, cite 859 (Bkrtcy.E.D.Va.1985), postconfirmation 29 While results facts distinguishable. appears revested upon pursuant placed some Under circumstances, concluded, 1.677(a)-1(d). supra, 860, 864. case, revest instead, estate's directly himself contribute anything thus fail how can characterize grantor. 30 Second, almost "disbursing agent" liquidated funds dissenting judge below, labels characterizations status law. F.2d, 1547. regulations, restrictions remove coverage 6012(b)(4).1 C 31 finally 6012 6151 note creditor" creditor accepted precludes creditor, add should objected wanted different result. disagree. 32 appointment. Reply Brief 13, n. 16. asserts 6012(b) No liability becomes until time making those returns. Hartman Lauchli, 238 881, 887 (CA8 1956); Pan American Van Lines 607 1299, 1301 (CA9 1979). 101(10) (1988 ed., Supp. II) "creditor" used kinds pre-confirmation claims). For reasons, 33 Reversed. petitioners conceded taxable entity." 898, 900 This "concession" help asserted argued create instead If accept reject

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