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Wisconsin Central Ltd., et al. v. United States

Paid petition · United States Court of Appeals for the Seventh Circuit, No. 16-3300, 16-3303, 16-3304 · judgment May 8, 2017

Decided · June 21, 2018
Pre-decision estimate: 1% cert probability

Before the decision, well below the 4.1% base rate, with no standout signals pointing toward a grant.

Question presented

The Railroad Retirement Tax Act, 26 U.S.C. § 3231(e)(l), defines taxable "compensation" as "any form of money remuneration paid to an individual for services rendered as an employee." Petitioners' employees obtained stock when they exercised stock options granted by petitioners. The Seventh Circuit-agreeing with the Fifth Circuit but in direct conflict with the Eighth Circuit-held that stock is "money remuneration" and hence taxable "compensation." The question presented is: Whether stock that a railroad transfers to its employees is taxable under the Railroad Retirement Tax Act, 26 U.S.C. § 3231(e)(l).

Counsel of record

For petitioner
Thomas Henderson Dupree Jr.
Gibson, Dunn & Crutcher LLP

For respondent
Noel John Francisco
Jones Day

Case

Conference history
Distributed for 2 conferences

Amicus briefs
1 cert-stage · 3 merits
(3 supporting pet./neither)

Argument & decision

Argued April 16, 2018 — Thomas H. Dupree · Rachel P. Kovner. Audio and transcript

Decided June 21, 2018. Opinion by Gorsuch.

Proceedings

  1. Jul 23 2018
    JUDGMENT ISSUED.
  2. Jun 21 2018
    Judgment REVERSED and case REMANDED. Gorsuch, J., delivered the opinion of the Court, in which Roberts, C. J., and Kennedy, Thomas, and Alito, JJ., joined. Breyer, J., filed a dissenting opinion, in which Ginsburg, Sotomayor, and Kagan, JJ., joined.
  3. Apr 16 2018
    Argued. For petitioners: Thomas H. Dupree, Jr., Washington, D. C. For respondent: Rachel P. Kovner, Assistant to the Solicitor General, Department of Justice, Washington, D. C.
  4. Apr 03 2018
    Reply of petitioners Wisconsin Central Ltd., et al. filed. (Distributed)
  5. Apr 02 2018
    Record received from the U.S.C.A. 7th Circuit is electronic and located on PACER.
  6. Mar 30 2018
    Record requested from the U.S.C.A. 7th Circuit.
  7. Mar 19 2018
    Brief of respondent United States filed. (Distributed)
  8. Mar 07 2018
    CIRCULATED
  9. Feb 23 2018
    SET FOR ARGUMENT on Monday, April 16, 2018.
  10. Feb 23 2018
    Brief amici curiae of CSX Corporation and Union Pacific Railroad Company filed.
  11. Feb 23 2018
    Brief amicus curiae of Association of American Railroads filed.
  12. Feb 23 2018
    Brief amicus curiae of Norfolk Southern Corporation filed.
  13. Feb 16 2018
    Brief of petitioners Wisconsin Central Ltd., et al. filed.
  14. Feb 16 2018
    Joint appendix filed. (Statement of costs filed)
  15. Jan 12 2018
    Petition GRANTED.
  16. Jan 08 2018
    DISTRIBUTED for Conference of 1/12/2018.
  17. Dec 20 2017
    DISTRIBUTED for Conference of 1/5/2018.
  18. Dec 06 2017
    Brief of respondent United States filed.
  19. Nov 09 2017
    Brief amicus curiae of Association of American Railroads filed.
  20. Oct 26 2017
    Order extending time to file response to petition to and including December 11, 2017.
  21. Oct 06 2017
    Petition for a writ of certiorari filed. (Response due November 9, 2017)