TLR 3d Circuit Blog

Ball v. Commissioner of IRS

February 12, 2014

#Tax #Corporations

An S Corporation (“S Corp.”) that elects to treat its subsidiary as a qualified subchapter S subsidiary (“Qsub”) and is later sold does not create an “item of income” for tax purposes; therefore, shareholders of the S Corp. cannot adjust their stock bases and declare losses. This decision closes a potentially significant tax loophole for S corps. Continue reading

US v. Banks

February 12, 2014

#Waiver, #Sentencing, #CriminalProcedure

A waiver clause contained within a plea agreement not to appeal a sentence will be enforced where a defendant knowingly and voluntarily consents to such a waiver, and the waiver’s terms would not result in a miscarriage of justice. Continue reading

In re Grand Jury Subpoena

February 12, 2014

#CrimeFraudException, #AttorneyClientPrivilege,

The crime-fraud exception to attorney-client privilege applies to an attorney’s in camera testimony before a grand jury. Continue reading

US v. Golson

February 11, 2014


The Third Circuit affirmed the district court’s decision to deny defendant’s motion to suppress on the grounds that the government did not commit search and seizure violations. Continue reading

SEC v. Teo, Sr.

February 10, 2014

#StandardofReview, #Evidence, #SecuritiesFraud

Profits realized after sale of stock that was accumulated in willful violation of SEC reporting requirements unjustly enriched the owner. The unjust enrichment warranted the disgorgement of those profits regardless of any intervening cause. Continue reading

Louisiana Forestry Assn. Inc. v. Secretary U.S. Department of Labor

February 5, 2014

#AdministrativeLaw, #APA, #Immigration, #LaborLaw, #StatutoryInterpretation

The Department of Labor (“DOL”) permissibly promulgated its 2011 Wage Rule—changing the wage calculation methodology for the H-2B visa program’s labor certification process—under the authority of the Department of Homeland Security (“DHS”). Continue reading