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NOLEN v. SHAW-WALKER COMPANY

No. 20963.

449 F.2d 506 (1971)

Catherine Wilson NOLEN, on behalf of herself and all other stockholders of the Shaw-Walker Company, Plaintiff-Appellant, v. The SHAW-WALKER COMPANY et al., Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

October 12, 1971.

Attorney(s) appearing for the Case

Nathan B. Driggers, Detroit, Mich., for plaintiff-appellant; Cross, Wrock, Miller & Vieson, Andrew A. Paterson, Jr., Sanford Tannenbaum, Detroit, Mich., on brief.

Harold M. Street, Muskegon, Mich., Nathan B. Goodnow, Detroit, Mich., Edward C. McCobb, Grand Rapids, Mich., for defendants-appellees; Dykema, Gossett, Spencer, Goodnow & Trigg, Robert V. Seymour, Detroit, Mich., on brief for Shaw-Walker; Poppen, Street, Sorenson & Engle, Muskegon, Mich., on brief for Guy M. Harrington, A. B. Nevins, R. C. Boyd and C. S. Munson, Jr.; Landman, Hathaway, Latimer, Clink & Robb, M. L. Bradbury, Jr., Muskegon, Mich., on brief for Muskegon Bank and Trust Co.; Dahlberg, Mallender & Gawne, J. Donald McLeod, Detroit, Mich., on brief for John I. Shaw; McCobb, Heaney & Van't Hof, Brian R. Heaney, Grand Rapids, Mich., on brief for The Shaw-Walker Co.

Before PHILLIPS, Chief Judge, and WEICK and McCREE, Circuit Judges.

McCREE, Circuit Judge.

We consider an appeal from the dismissal of substantially all of an eight-count complaint charging the improper accumulation of earnings by the Shaw-Walker Company for the years 1954 through 1967. A related case concerning this company has twice been before this court. In 1965, the Tax Court of the United States sustained a $1,580,366.50 penalty tax asserted against the corporation under §§ 531 et seq. of

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