Bank of America National Trust and Savings Association, as Trustee of Fox Oil Company Trusts v. United States
Opinion
Opinion
Bank of America National Trust and Savings Association (“Trustee”) as trustee of the Fox Oil Company Trusts (“Taxpayer”) sued for a refund of taxes overpaid during 1969-1971, claiming that the Government improperly characterized the Taxpayer as an “association” taxable as a corporation under Internal Revenue Code §§ 7701(a)(3), 11(A). The district court held that the Trustee was foreclosed from relitigating the issue by reason of this court’s prior adjudication against the Trustee in a case involving the same facts and the same parties. (See United States v. Trust No. B.I. 35, Bank of America National Trust & Savings Association [“Bank of America I”] (9th Cir. 1939) 107 F.2d 22 .) Invoking C. I. R. v. Sunnen (1948) 333 U.S. 591 , 68 S.Ct. 715 , 92 L.Ed. 898 , the Trustee contends that the preclusionary effect of Bank of America I was removed by our decision in Rohman v. United States (9th Cir. 1960) 275 F.2d 120 , which changed the legal climate that prevailed at the time the prior case was decided. We hold that Bank of America I controls by the operation of stare decisis, irrespective of the res judicata effect of Bank of America I.