Court Opinion

ID: 9462062
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:30:57.371814+00
Date Added: 2024-06-11T17:37:22.982290
License: Public Domain

WIDENER, Circuit Judge
(concurring):
I concur in the result and in large part with the opinion of the court.
I wish to note particularly that we reject the Tax Court’s opinion as it characterizes the standard to be applied as objective, 61 T.C. No. 85, at pp. 33-34, implying that it may not be otherwise, despite its later citation of Boehm. The Tax Court overly minimized the weight to be accorded subjective factors, and misconstrued Boehm on p. 35 of its opinion. Boehm’s holding of moment here is no more than the “taxpayer’s reasonable and honest belief as to worthlessness,” a “subjective factor,” is not the “controlling or sole criterion.” Boehm, 326 U.S. at p. 292, 66 S.Ct. 123. The Tax Court’s further limitation of the use of subjective evidence is not authorized by Boehm. Rather, Boehm is to the contrary. It merely rejects the “taxpayer’s attitude and conduct” as the “decisive factor in every case.” Boehm, at p. 293, 66 S.Ct. 124.
In applying a “flexible, practical” standard as required by Boehm, p. 293, 66 S.Ct. 124, subjective factors may be accorded great weight.
If our opinion may be read to hold that Sykes’ opinions that were not communicated to his clients were not admissible because not so communicated, I disagree. Such ruling would be in the teeth of Boehm and establish a wholly subjective standard which Boehm rejects. The opinion of Sykes, admittedly a skillful attorney, as to the merits of the taxpayers’ claims against the bank, was obviously relevant in any kind of objective inquiry.
Since the trial of this case was to a court sitting without a jury, the excluded testimony of Sykes was at the very least near enough to the borderline of admissibility to have been admitted and later taken proper account of in the opinion and decision of the tax court. 9 Wright and Miller, Federal Practice and Procedure, Civil, §§ 2412, 2414. An excerpt from the opinion in Builders Steel Co. v. C.I.R., 179 F.2d 377, 379 (8th Cir. 1950), should apply here:
“One who is capable of ruling accurately upon the admissibility of evidence is equally capable of sifting it accurately after it has been received, and, since he will base his findings upon the evidence which he regards as competent, material and convincing, he cannot be injured by the presence in the record of testimony which he does not consider competent or material.”
Because Maryland law is clear, though, that the contributory negligence of the taxpayers would not necessarily bar their suit against the bank, in particular see Md.Ann.Code Art. 95B, §§ 3-406 and 4-406, I think any error brought to our attention in the admissibility of evidence is harmless. 28 U.S.C. § 2111; see F.R. C.P. 61.