ELECTRONIC MODULES CORP. v. UNITED STATES

Appeal No. 179-77.

695 F.2d 1367 (1982)

ELECTRONIC MODULES CORPORATION, Appellee, v. The UNITED STATES, Appellant.

United States Court of Appeals, Federal Circuit.

December 15, 1982.


Attorney(s) appearing for the Case

Harry D. Shapiro, Baltimore, Md., argued for the appellee. With him on the brief were Jacques T. Schlenger and Kenneth R. Hoffman, Baltimore, Md.

Robert S. Watkins, Washington, D.C., argued for the U.S. With him on the brief were Acting Asst. Atty. Gen. John F. Murray, Theodore D. Peyser, Jr., and Arthur L. Biggins, Washington, D.C.

Before MARKEY, Chief Judge, FRIEDMAN and RICH, Circuit Judges.


FRIEDMAN, Circuit Judge.

This appeal from the United States Claims Court* presents the oft-recurring question whether advances by a stockholder to its corporation constituted debt or equity. Here a corporation made advances to its wholly owned subsidiary. When it subsequently liquidated the subsidiary and determined that the assets it received from the subsidiary were virtually worthless, the...

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