Clarence Thomas on Corporations
Supreme Court Justice (nominated by Pres. Bush Sr. 1991)
Corporate spending is protected speech, even if anonymous
In Citizens United v. Federal Election Commission, the Supreme Court ruled, 5-4, that the government cannot restrict the spending of corporations for political campaigns, maintaining that it's their First Amendment right to support candidates as they
choose. This decision upsets two previous precedents on the free-speech rights of corporations. Pres. Obama expressed disapproval of the decision, calling it a "victory" for Wall Street and Big Business.
Roberts, Scalia & Alito concurred; Stevens, Ginsburg, Breyer, & Sotomayor partly dissented (on grounds that electioneering spending is not protected free speech); Thomas partly dissented (on grounds that anonymous spending is protected free speech).
Source: InfoPlease.com on 2010 SCOTUS docket #08-205
, Jan 21, 2010
Upheld "double windfall": plain text of tax law permits it
The Supreme Court ruled for taxpayers in a dispute over how to calculate taxes owed by shareholders of insolvent small businesses classified as "S corporations."
The court ruled 8-1 for two Colorado men who sought to use a $2 million forgiven debt to provide more tax deductions than the Internal Revenue Service said was allowed.
Writing for the court, Justice Clarence Thomas said other courts had expressed concern that such a ruling would give some shareholders a "double windfall."
But Thomas said the federal tax law's "plain text permits the taxpayers here to receive these benefits."
Source: Denver Post on 2020 SCOTUS case: "S Corp owners"
, Jan 10, 2001
Sovereign immunity only applies to foreign-owned companies.
Justice Thomas joined the Court's decision on DOLE FOOD v. PATRICKSON on Apr 22, 2003:
In 1997, a group of Central American farm workers alleged injury from chemical exposure against Dole Food Company and the Dead Sea Companies, which produced dibromochloropropane, an agricultural pesticide that harmed the farm workers. Dole argued that the Dead Sea Companies were instrumentalities of a foreign state, Israel, as defined by the Foreign Sovereign Immunities Act of 1976 (FSIA) and thus entitled to immunity.
HELD: Delivered by Kennedy; joined by Rehnquist, Stevens, Scalia, Souter, Thomas, and GinsburgThe Court held, 7-2, that a foreign state must itself own a majority of the shares of a corporation if the corporation is to be deemed an instrumentality of the state under the provisions of the FSIA. The corporate structure ("tiering") in this particular case prevented the Dead Sea Companies from claiming instrumentality status.
CONCURRENCE IN PART and DISSENT IN PART: By Breyer; joined by O'ConnorThe phrase "owned by a foreign state" covers a foreign state's legal interest in a corporate subsidiary, where that interest consists of the foreign state's ownership of a corporate parent that owns the shares of the subsidiary. The relevant foreign nation does not DIRECTLY own a majority of the corporate subsidiaries' shares. But (simplifying the facts) it does own a corporate parent, which, in turn, owns the corporate subsidiaries' shares. Does this type of majority-ownership interest count as an example of what the statute calls an "other ownership interest"? The Court says no. I disagree.
Source: Supreme Court case 03-DOLE argued on Jan 22, 2003
Ok to sue for corporate direct OR indirect negligence.
Justice Thomas joined the Court's decision on CSX TRANSPORTATION v. MCBRIDE on Jun 23, 2011:
A railroad employee complained that the configuration of locomotives he had been assigned was unsafe because it required excessive use of an independent handbrake. Told to run the configuration as it was, the engineer after 10 hours of work injured his hand while using the handbrake. He never recovered full use of his hand and sued the railroad under the Federal Employers' Liability Act (FELA).
HELD: Proximate cause not needed in railroad employee injury suitDelivered by Ginsburg; joined by Breyer, Sotomayor, Kagan & ThomasRecognizing the hazards of railroading, Congress enacted FELA in 1910. It allowed injured employees to recover "for injury resulting from negligence" of the railroad. By using this language, Congress intended to substitute for common law "proximate cause" a standard that any negligence by the railroad, however slight, that caused injury to an employee would lead to railroad liability for the injury.
Congress dispensed with examination of whether the railroad's negligence was the "direct" or "probable" cause of the injury. If any injury is forseeable, and the railroad negligent in preventing it, FELA allowed damages even if the particular injury is not forseeable. FELA's wording, Supreme Court precedent, and 50 years of Court of Appeals decisions following this precedent lead to this conclusion.
DISSENT: Congress did not disavow proximate cause in worker RR suitsFiled by Roberts; joined by Scalia, Kennedy, and AlitoProximate cause has long been a requirement in tort law. When enacting FELA, Congress expressly disavowed four other common law standards of tort law; The Court therefore has no basis to find that Congress intended to do away with proximate cause in FELA cases by implication. The Court misinterprets the Court's precedent and provides a standard for FELA cases lacking in guidance to courts and allowing unpredictable recoveries.
Source: Supreme Court case 11-MCBRIDE argued on Mar 28, 2011
Page last updated: Mar 21, 2022