ESTATE OF CARTWRIGHT v. C.I.R.

No. 97-70032.

183 F.3d 1034 (1999)

ESTATE OF ROBERT E. CARTWRIGHT, Deceased, Dorothy G. Cartwright, Executrix, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided July 12, 1999.


Attorney(s) appearing for the Case

John M. Youngquist and Donald L. Feurzeig, Titchell, Maltzman, Mark, Bass, Ohleyer & Mishel, San Francisco, California, for the petitioners-appellants.

Randolf L. Hutter, United States Department of Justice, Tax Division, Washington, D.C., for the respondent-appellee.

Before: T.G. NELSON, THOMAS, and SILVERMAN, Circuit Judges.


Opinion by Judge SILVERMAN; Partial Concurrence and Partial Dissent by Judge THOMAS.

SILVERMAN, Circuit Judge:

At the time of his death in 1988, Robert E. Cartwright was the majority shareholder of the law firm of Cartwright, Slobodin, Bokelman, Borowsky, Wartnick, Moore & Harris, Inc. ("CSB"). When he died, the firm received life insurance proceeds of over five million dollars, which it paid to his estate under the terms of a shareholders' agreement....

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