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Blue Ox Institutes Key Management Changes
June 25, 2014 by RVBusiness · Comments Off on Blue Ox Institutes Key Management Changes
As Jay Hesse, CEO and president of Blue Ox, battled the disease of cancer, he proactively prepared for the continued growth of the company.
According to a press release, key management and ownership changes have been made at Hesse's request regarding the supplier's strategic direction, including:
• Ellen Kietzmann will assume the role of CEO and president, and will be responsible for all day-to-day operations of Blue Ox. Her 20 years of experience with Blue Ox working side-by-side with Hesse and within the industry has made her "uniquely qualified to lead the company and to build on the legacy Hesse put in to place," the company said.
• The new board consists of Kietzmann, Mike Hesse and Sandy Hesse.
"Everyone at Blue Ox looks forward to serving the needs of our customers and continuing the company's growth with this leadership team in place," the release stated.
Blue Ox, Iowa Speedway Forging Partnership
May 16, 2014 by RVBusiness · Comments Off on Blue Ox, Iowa Speedway Forging Partnership
Officials from RV supplier Blue Ox along with Iowa Speedway Track President Jimmy Small have announced a new multiyear partnership that designates the trackside general campgrounds and driver/owner motorcoach camping lots as the Blue Ox Campgrounds.
The two-tiered trackside campground overlooks turns 3 and 4 above the "Fastest Short Track on The Planet." As part of the agreement, Blue Ox will be named the Official Towing Products Provider of Iowa Speedway. Blue Ox is the leading manufacturer of tow bars, baseplates, weight distributing hitches, gooseneck hitches and motorhome suspension products. The Blue Ox brand is familiar to many NASCAR team owners, fans and drivers who make race tracks their home for more than 30 event weekends a year.
"Blue Ox is pleased to partner with the Iowa Speedway," noted Blue Ox President Jay Hesse. "We wanted to sponsor this track because of our fondness for the NASCAR fan base and because we see a lot of advantage in promoting our tow bars, weight distributing hitches, gooseneck hitches, etc. in this venue. Also it is the closest track to our factory in Pender, Neb., so it is easier for us to attend. We look forward to many years of working with the track to support our NASCAR friends"
For the full story click here.
Blue Ox Mines Military Segment During Downturn
March 31, 2014 by RVBusiness · Comments Off on Blue Ox Mines Military Segment During Downturn
When the national recession almost drove Blue Ox's recreational vehicle business over a cliff, the Northeast Nebraska manufacturer looked for ways to diversify. Last year, that road took the company to the U.S. military as it sought to adapt its technology and craftsmanship to military vehicles.
As reported by the Sioux City Journal, the small family business is known internationally for its line of towing products, such as hitches used to haul trailers behind RVs. But after the boom profit year of 2005, the company spent eight years trying to live up to its motto, "Strong As An Ox," falling completely into the gutter in 2008, company President Jay Hesse said.
It appears Blue Ox turned the corner in 2013.
"It was an absolutely fantastic year, and this year even looks much stronger," he said. "We're looking for about a 15% increase in sales this year and more contingent growth on the bottom line."
Blue Ox started developing tow bars for heavy-duty military vehicles such as Humvees and even tanks. The company, Hesse said, designed a modern product that is lighter and easier to use than the military's current towing system, which dates to the 1940s.
Blue Ox's defense-grade tow bars are capable of hauling more than 120,000 pounds, but light enough that a single soldier could quickly hook it up to a disabled vehicle. During combat, that could save lives and preserve valuable military assets.
To help navigate the competitive process of bidding for military and homeland security contracts, Blue Ox retained American Business Development Group, a defense consulting firm whose Arlington, Va., offices are near the Pentagon and National Guard Bureau Headquarters.
To read the entire story click here.
Blue Ox Unveils New Innovation For 'SwayPro'
January 7, 2014 by RVBusiness · Comments Off on Blue Ox Unveils New Innovation For 'SwayPro'
Pender, Neb.-based Blue Ox announced the newest innovation to its SwayPro weight-distributing hitch. According to a press release, the BXW4019 Signature Series Rotating Latch is a new bolt-on latch designed to accommodate frames from 3 inches to 6 inches tall.
The Signature Series Latch can be bolted directly to or around the trailer frame. The new design augments the existing trailer frame – some of which have difficulty absorbing the forces of a weight distributing hitch – and prevents trailer sway when used in concert with the SwayPro's spring steel bars and innovative hitch head. Rotating the latch stops the chains from swinging, preventing sway before it happens, the company said.
"With the addition of this new Signature Series latch, Blue Ox continues to evolve the design of the SwayPro, the finest weight distributing hitch on the market," noted Blue Ox Vice President Raymond Padgett.
Blue Ox offers the SwayPro weight distribution hitch in six tongue weights: 350, 550, 750, 1,000, 1,500 and 2,000 pounds.
Nebraska Senator Tours Blue Ox Pender Facility
December 5, 2013 by RVBusiness · Comments Off on Nebraska Senator Tours Blue Ox Pender Facility
Republican Nebraska U.S. Sen. Deb Fischer recently toured Blue Ox's manufacturing plant and headquarters in Pender. According to a press release, she was hosted by Blue Ox Executive Vice President Ellen Kietzmann and Vice President Raymond Padgett.
"We're delighted to welcome Senator Fischer to Blue Ox," noted Kietzmann. "Time after time, Sen. Fischer has demonstrated her commitment to supporting policies that further the growth and deployment of manufacturing in Nebraska. Her outstanding work in Washington, D.C., has been instrumental in furthering laws and policies that help foster the growth of manufacturing throughout the nation."
While at the manufacturing plant, Sen. Fischer spoke with Blue Ox executives and employees and discussed the implementation of federal and state policies that will help spur the growth of the manufacturing jobs in Nebraska and throughout the U.S.
Headquartered in Pender, Blue Ox is a key supplier to the RV industry.
Blue Ox, Forest River Partner on Hitch Program
October 2, 2013 by RVBusiness · Comments Off on Blue Ox, Forest River Partner on Hitch Program
Blue Ox President Jay Hesse and Vice President Ellen Kietzmann announced Tuesday (Oct. 1) an alliance with Forest River Inc. to equip select V-Cross and XLR models with SwayPro built-in sway prevention systems as optional equipment.
According to a release, Brent Stevens, national sales manager of the V-Cross and XLR divisions, is premiering the SwayPro system as an optional feature on the new 2014 lineup. Additionally, SwayPro is offered free as part of a special limited promotion on the Vibe brand through March 1, 2014.
"Blue Ox is the best name in sway control. Our customers will appreciate Blue Ox's intuitive, easy to hookup hitch system that prevents trailer sway before it starts for a smooth towing experience. Each SwayPro system is specifically engineered for the weight of the unit it ships with," Stevens said.
Blue Ox's SwayPro hitch offers built-in sway protection that prevents trailer sway before it starts, under heavy loads, high winds and rutted road conditions with the latest in weight distribution technology. SwayPro's spring bars are made from spring steel and flex to provide optimal weight distribution and improved ground clearance, providing a softer, smoother ride. There are no pins or clips to lose and no adjustments are needed. The tow-ready system comes with a limited lifetime warranty.
Blue Ox Expands Braking System Product Line
October 1, 2013 by RVBusiness · Comments Off on Blue Ox Expands Braking System Product Line
Blue Ox, the leading manufacturer of towing products, has reintroduced the BrakeSafe, BRK4000, to its braking system line.
BrakeSafe is a supplemental braking system that allows for a smooth, proportional braking experience. It utilizes the motorhome's air brakes to activate the brakes in the towed vehicle, reducing braking distances by an average of one-third.
The air cylinder is mounted discreetly close to the driver's seat with a durable, black powder-coated bracket and a brake claw that easily attaches to a straight brake pedal arm.
It can be installed in less than an hour and, when not in use, can be removed in less than three minutes by disconnecting the brake claw from the pedal and the self-coiling hose from the towed vehicle.
BrakeSafe also requires no power draw from the towed vehicle's battery; therefore there is no need to recharge it.
All units are equipped with ample DOT approved tubing for all applications, installation hardware and dust plugs to prevent road grime and moisture from potentially plugging the air disconnects. For more information, contact Blue Ox at (402) 385-3051 or visit www.blueox.com/p-1585-brakesafe.aspx for more information.
'ROTV' to Enlist Blue Ox as Advertising Partner
September 23, 2013 by RVBusiness · Comments Off on 'ROTV' to Enlist Blue Ox as Advertising Partner
"Rollin' On TV" announced the addition of Blue Ox as its newest advertising partner for the remainder of this year and into 2014.
"We look forward to working with Blue Ox in developing and producing a multimedia promotion package that includes both television and online advertising and promotions," said Jose Moniz, executive director of "Rollin' On TV," in a press release.
Initial ads will begin airing the week of Sept. 29 with new ads being produced in November for the 2014 season.
"Rollin' On TV," now wrapping up its third year of production and syndication, has a total combined reach of 30 million homes on cable plus Direct TV and Dish Network.
Headquartered in Pender, Neb., Blue Ox is a longtime industry supplier of quality hitches, tow bars, steering and braking systems, and suspension products. For information on Blue Ox visit www.blueox.com. For information on 'ROTV' programming visit www.rollinontv.com
Supplier Blue Ox Names Padgett VP, Marketing
August 13, 2013 by RVBusiness · Comments Off on Supplier Blue Ox Names Padgett VP, Marketing
Industry supplier Blue Ox announced that Raymond Padgett has been named as vice president of marketing, effective Aug. 19.
According to a press release, Padgett has worked with Blue Ox in a variety of capacities for over 15 years. Prior to Blue Ox, Padgett worked for 12 years with Stag Parkway Inc. along with Keystone Automotive, where he helped the company expand into the RV market.
Padgett also holds board seats with the Recreation Vehicle Aftermarket Association (RVAA) and the RV/MH Hall of Fame.
The teams reporting directly to Padgett will include marketing and rally sales and service.
"I am looking forward to Raymond joining the executive team at Blue Ox," said Jay Hesse, president of Pender, Neb.-based Blue Ox. "I've always had a deep respect for Raymond and I'm confident that he will be a strong presence in helping us grow our business in all the markets we serve."
Blue Ox Adapter Targets Aftermarket Bumpers
July 18, 2013 by RVBusiness · Comments Off on Blue Ox Adapter Targets Aftermarket Bumpers
Pender, Neb.-based Blue Ox has developed a variety of double lugs that replace the standard triple lug on new or existing tow bars, allowing the tow bar to be connected to most aftermarket bumpers without any modifications.
According to a press release, these aftermarket bumpers cause problems for vehicle owners who want to dinghy tow their vehicles. "The baseplates that Blue Ox and other companies manufacture will not work on vehicles that have these aftermarket bumpers," the release stated.
In other cases, where the connection points are not available as part of the aftermarket bumper, the purchase of a customer-designed Blue Ox baseplate that bolts to the vehicle frame will be needed to tow. Installation is usually less than 1 1/2 hours (depending on model) and requires standard tools.
Blue Ox's towing equipment is constructed of durable steel and Finite Element Analysis tested. For more information visit http://blueox.com/p-1570-off-road-adapters.aspx.
Blue Ox Honors Associates at Awards Banquet
July 11, 2013 by RVBusiness · Comments Off on Blue Ox Honors Associates at Awards Banquet
Pender, Neb.-based Blue Ox held its 18th Annual Service Award Banquet at the Hilton Garden Inn in Sioux City on June 15.
According to a press release, the supplier hosts an annual banquet to show appreciation to the associates and their years of dedication. Associates and their guests were treated to a social hour and a gourmet meal before the award presentation began.
Blue Ox honors its associates at five-year intervals. Those honored at this year's banquet were:
5 Years – Ward Barelman of Wayne (IT department).
10 Years – Ed Isaac of Bancroft (service tech), Todd Kubik of Pender (material handler), Aaron Mahaney of Walthill (maintenance), and Mike Thelander of Melbourne, Fla. (outside sales).
15 Years – Kim Bargmann of Bancroft (supply chain specialist), Delwin Kai of Pender (fabrication), and Deanna Wendte of Pender (customer care).
20 Years – Ron Duncan of Pender (Welding) and Cory Meyer of Pender (Shipping and Assembly).
25 Years – Duane Kratke of Pender (fabrication), Ray Potter of Thurston (assembly), Billie Rager of Emerson (fabrication) and Paul Thomsen of Pender (customer care).
35 Years – Keith Brehmer of Pender (material handler) and Doug Glaubius of Wisner (fabrication).
40 Years – Joan Beckman of Pender (assembly) and Larry Witt of Wakefield (welding).
In appreciation of their years of service the honored guests received various gifts including;
• Beautiful detailed, life-like Terry Redlin deer sculptures, modeled after Redlin paintings.
• Beautiful clock with a walnut frame, gold/silver accents, and a pendulum with crystals from Swarovski components.
• Beautiful world globe inlaid with over 25 hand carved semi-precious gemstones on a gold plated table stand with a built-in compass.
• $1,750.00 credit towards a trip for two to a domestic destination of choice within the 48 continental United States.
• Beautiful 10k patented Sunshine Gold Blue Ox ring with genuine full cut diamonds set in square collects in West German Fire Blue Spinel stones
• Beautifully designed classic styled grandfather clock.
•Trip for two to Ireland.
• Hawaiian cruise for two.
Blue Ox Hoping to Supply Material to U.S. DOD
June 14, 2013 by RVBusiness · Comments Off on Blue Ox Hoping to Supply Material to U.S. DOD
Blue Ox President Jay Hesse and Vice President Ellen Kietzmann completed a trip to Washington, D.C., last week where they visited members of Nebraska's congressional delegation – Sens. Mike Johanns and Deb Fisher and Rep. Jeff Fortenberry – to discuss the role of Blue Ox in providing material to the U.S. Department of Defense.
According to a press release, Hesse said he and Kietzmann have been working with the American Business Development Group, which specializes in helping to develop contracts to supply equipment to U.S. military forces and introduce Blue Ox to Nebraska's representatives in the nation's capital.
"We were in Washington, D.C., to meet with our representatives to let them know who we are, where we're at and what we do including diversifying what we already do," said Hesse. "We've been manufacturing in the agricultural and the RV industries and we wanted to emphasize that we have the capabilities to work in the defense industry."
Known for making hitches to haul trailers and vehicles behind utility, commercial, agricultural and recreational vehicles, Blue Ox also makes tow bars of defense-grade materials that can haul 20,000, 40,000, 80,000 and 120,000 pounds. "These would be pulling heavy military vehicles," Hesse said of the heavy-load tow bars. "These would be from HUMVEEs and other similar-sized vehicles up to some tanks."
Hesse said that Sens. Johanns, Fischer and Rep. Fortenberry plan to tour Blue Ox facilities in August. "We have our headquarters in Pender but we're looking at expanding the engineering and logistics of our two facilities in Lincoln," said Hesse who noted that retired Major General Roger Lempke, former adjutant general of the Nebraska National Guard, will also tour Blue Ox facilities "We're looking at acquiring equipment and expanding the Lincoln facilities to handle defense contracts," said Kietzmann. "Our goal is to put the Department of Defense side of our operations in Lincoln."
For more information about Blue Ox and its complete line of Blue Ox towing and braking systems, steering controls systems, sport carriers and accessories, along with its agricultural products, visit www.blueox.com.
Jay Hesse Donates $5,000 to Hall, With a Twist
November 5, 2012 by RVBusiness · Comments Off on Jay Hesse Donates $5,000 to Hall, With a Twist
Jay Hesse, president of Blue Ox, has donated $5,000 to the RV/MH Heritage Foundation, Inc.'s current "Burn the Bank Note" campaign for its Elkhart, Ind.-based RV/MH Hall of Fame and Museum.
According to a press release, Hesse, who also serves on the Hall's executive committee as vice chairman, proposed to Hall President Darryl Searer an idea designed to reach the "Burn the Bank Note" challenge even sooner. Hesse's idea is what he describes as a "Peer Challenge."
The "Peer Challenge program" works like this: Once a company or individual makes a contribution of $1,000 or more, they could challenge up to three other companies. The challenger would go to the Hall's website and enter a few lines of information about the company or individual they intend to challenge. The web program then generates and sends a personalized, detailed e-mail informing them that they have been challenged to match the donation.
Hesse believes a company should challenge others in their own industry and market segment. In other words, an RV supplier would challenge another RV supplier, a manufacturer another manufacturer, a distributor a distributor or an individual would challenge another individual.
Hesse said, "The challenged company or individual basically has three choices. First, and ideally, to match the challenger's donation; second, contribute a different amount either greater than or less than the original challenger's donation and start a new challenge; or finally, ignore the challenge, which we hope they will not do. If they match the challenge or start a new challenge then they would challenge others. This bicycling effect could result in more donations and be a huge benefit to the Hall."
Searer said, "This is a great idea. Jay's Peer Challenge program should help us achieve our goal much quicker. I've learned since becoming president of the Hall that people in both the RV and manufactured housing industries are generous and would be happy to make a contribution if asked. And the 'Peer Challenge' makes it easy to ask."
The goal is to raise $150,000 in voluntary contributions by April 30, 2013, to be matched by the Robert "Boots" Ingram family, which has offered a $50,000 challenge grant, and that $200,000 would pay off the Hall's bank note to 1st Source Bank.
Tax-deductible gifts, adds Searer, may be made by mail, in person at the Hall, by phone at (800) 378-8694, or through the Hall's web site at www.rvmhhalloffame.org.
RVB/Blue Ox Survey: Fix Model Year Approach
August 24, 2012 by Sherman Goldenberg · Comments Off on RVB/Blue Ox Survey: Fix Model Year Approach
The jury's in, so to speak, on the latest RVBusiness/Blue Ox Survey question, and industry respondents have returned their most lopsided decision to date on the question of whether the North American recreational vehicle industry, for a variety of reasons, should better coordinate its new model introductions.
A commanding 88% of those posting their opinions say they'd prefer a more coordinated new model introduction cycle – something more akin to the auto industry where new releases all debut in a relatively narrow window of time, most likely in the fall. Only 12% would prefer to see things stay the way they are, where new models debut virtually non-stop year-round, from April to April.
Here's the essence of what people were telling us in the latest round of a periodic survey sponsored by Blue Ox, the Pender, Neb.-based RV industry supplier, and administered by RVBusiness and RVBUSINESS.com:
"For dealers in the north, model change happens in the middle of the spring show season. Hardly fair to be competing in an already tough market with perceived non-current inventory that the dealers carried all winter. August/September would be the best time for model change allowing for a structured retailing program year round and especially for dealing non-current models." — Anonymous
"Follow more closely to what the U.S. auto industry does." — Anonymous
"Credibility is lost when a manufacturer jumps a model year prior to a calendar year (Ex: 2013 models sold in 2011). The industry regulating the timing for model year change-over would be a great thing to add consumer confidence to an industry lacking notable guidance." — Brad, Southern RV
"I would rather be selling 2013s instead of 2012s. Early introduction allows 20 months or more before your product becomes aged in the public's mind. You can get more for the 2013 than your competitor across town selling a similar 2012 model. You have all spring and summer to get rid of your 2012s. Dealers who want to keep ordering 2012s all spring and summer have things bass-ackwards, In my opinion, if you should get overstocked in the spring and summer, better to be overstocked with 2013s!" — Lee Litchfield, Lee's RV Superstore
"Having a consistent dated new model introduction would level the playing field for those that come out early to get an advantage. More importantly, dealers being mfg partners, would respond better and could plan consistent inventory and consistent purchasing without fear of what dealers will receive in when built. — Rob Reid, President, Great Lakes RV Center
"New model release dates are part of the marketing plan by the manufacturer and the manufacturer must decide in concert with his dealers what is best. If dealers don't like the release dates by their manufacturing partner, then they should change brands." — Anonymous
"I think it would be great if they could be on a coordinated approach so that our customers aren't so confused about new models b/c new car models come out next month for the 2013 year, so why not something like that for trailers? It also messes up the values of the previous year model, even if it was built the same year, dealers don't want to keep having to drop the price for 'last year's model' because a new model came out two months later. They (the manufacturers) need to agree on a coordinated approach to improve the overall RV business as a whole, and I know quality is not the main topic here, but a lot of them are still building substandard units and customers can tell." — Anonymous
"A more coordinated approach to new model introductions would make it easier on all parties involved. However, I seriously doubt that the process can be controlled and monitored to the point that all manufacturers would comply." – Keith Griffin, Bison Coach, LLC, A Navistar Company
"It would be great if they would all follow one release date unfortunately it all boils down to the almighty dollar. If brand "X" can get their latest greatest out before Brand "A" then the dealers will use their floorplan money to buy brand "X" with none left for brand "A". This is the same reason the mfg shows have started in Elkhart, IN two months before the Louisville show to try to get the dealers to use all their money so they don't have anything to spend at Louisville." — Anonymous
Look for a new RVB/Blue Ox Survey question — on foreign trade — early next week.
Blue Ox Adds 2 Products to Aid Dinghy Towing
June 22, 2012 by RVBusiness · Comments Off on Blue Ox Adds 2 Products to Aid Dinghy Towing
Blue Ox, a key supplier of towing and hitching products, has introduced two new solutions to assist RVers with dinghy towing.
According to a press release, the new LED taillight wiring kits are not only brighter than standard bulb and socket kits, but are also smaller for easier installation. The kits install independent of the towed vehicle's wiring, preventing back feed or warranty issues with the vehicle manufacturer. They're available in both clear and red as a complete wiring kit or 10 packs of bulbs only.
Blue Ox's fuse bypass switches are available in four different models. The switches provide a convenient alternative to the constant removal and re-installation of the fuse when changing from the towed mode to the driving mode.
The swithces offer a simple, one-time installation of the fuse switch allows for push button activation and deactivation of the fuse.


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Review: Scott Pilgrim vs. The World
PLOT: This is Scott Pilgrim. He's the 22-year-old bassist of the wanna-be rock back Sex Bob-omb. One day he meets the quite literal girl of his dreams, Ramona Flowers. She's a sexy and mysterious New York girl living in Toronto and Scott is determined to win her heart. But before he does, there's this little issue of The League of Evil Exes and seven former flames who will do nothing to ensure Scott and Ramona are kept apart.
REVIEW: "That's what great art is about. Guilt, longing, love disguised as sex, sex disguised as love..." Lester Bangs in ALMOST FAMOUS.
From the moment the iconic Universal logo unfurls in 8-bit style with MIDI fanfare, before making way for a Bill Hader narration and a musical cue from "The Legend of Zelda," you should know you're in for one of the most geek-friendly movies in recent history. But it's not just geeks who will love SCOTT PILGRIM VS. THE WORLD, a movie so rich with feeling, so bursting with originality and so plain old FUN that it'll be hard for anyone to resist.
Based on the equally fantastic series of Bryan Lee O'Malley's graphic novels that started in 2004 with "Scott Pilgrim's Precious Little Life" and ended recently with "Scott Pilgrim's Finest Hour," the film adapts the six volumes into a tight narrative that balances humor, action, music and romance with equal panache.
Fans of the comic were initially somewhat concerned when Michael Cera was announced as the cinematic version of Scott Pilgrim. Unlike the rest of the cast, Cera doesn't quite physically resemble his character (whereas it's eerie how much actors Mark Webber or Johnny Simmons look like their namesakes) but he nails it from the get-go. It's not an easy challenge as Pilgrim isn't exactly a flawless protagonist. He makes poor choices, hurts people and generally falls into many of the same emotional pitfalls a good deal of us did in our early-20s. But we always connect with him and relate to what he's going with and that speaks volumes to Cera's skills not just as a comic actor (his timing here is impeccable) but his dramatic chops as well.
The rest of the cast, including Mary Elizabeth Winstead, Ellen Wong, Kieran Culkin and Jason Schwartzman are so good it's easy to think that any of them could be the breakout star of the film. But fantastic cast aside, there's really only one breakout star of SCOTT PILGRIM: Edgar Wright.
With SCOTT PILGRIM, Edgar Wright has proved himself as one of the most talented directors currently working in Hollywood. A movie like SHAUN OF THE DEAD would be almost impossible to top for some directors but Wright has created a film every bit as fresh and exciting as SHAUN when it was released.
Wright has framed the film so it plays out something like a musical. We're in a relatively real and grounded world but instead of people breaking out into song and dance, they break out into massive fight sequences. And the action sequences are so brilliantly conceived, you never once flinch at the notion of Michael Cera kicking the ass of seven henchmen, Mary Elizabeth Winstead doing battle with a giant hammer or a Bollywood-style song/fight with demon hipster chicks. In fact not only do you not flinch, you "WHOA!" like at any great kung-fu film.
But honestly, all the cool action sequences in the world wouldn't make SCOTT PILGRIM work if it didn't have heart. SCOTT PILGRIM works because we connect with Scott. We've made mistakes, done stupid things, broken hearts, our hearts have been broken. We know what it's like to fight for something, sometimes fighting just as much for yourself as for anything else. For a film that deals so heavily with a younger generation and culture, SCOTT PILGRIM is a remarkably grown up film. In fact, it's a film about growing up. It's a story about growing up, falling in love, choices, taking responsibility, coming to terms with the past and ultimately finding yourself. While taking on the seven evil exes, Scott isn't just defeating Ramona's past but his own demons as well.
SCOTT PILGRIM VS. THE WORLD is the rare comic adaptation this is every bit as groundbreaking as its inspiration. The music will make your feet tap, the battles will make you cheer, the romance will warm your heart and, in the end, this movie will kick your ass. It's one of the best films of the year and a movie I just absolutely loved.
"Continue?..." I've got a whole roll of quarters right here.

subset: commoncrawl


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KC HiLiTES has been making off-road lights since 1970, meaning these guys know what they're doing. Available in halogen, HID and LED bulbs with black, chrome or stainless steel housing. Choose from the new style rectangular LED light bars or the tradition round or square off-road lights.
Order them one at a time or in pairs. Sets include a switch, light covers or guards and a wiring harness. 3", 4', 5", 6", 7", 8", 9" and 10"+ sizes to choose from. Light up your road with KC Lights off-road lights from RealTruck.com.
If you have any questions, give RealTruck a call at 877-216-5446. We have customer loyalty specialists by the phone seven days a week.


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This headline appeared in my Google Reader:
Sign to honor NY trooper killed by car
Was it a Transformer? I thought the Autobots were supposed to be on our side.
(The death of a trooper is not funny. It's the headline that mocks the troopers death.)
Posted from WordPress for Android


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are a couple of metallic makeovers that are sure to rustle some jimmies, but anyone offended would do well to remember that the Agassi Nike line was never one for honoring convention.Sole Collector will provide updates when each of these upcoming Nike Air Tech Challenge 3s release. Brennan Hiro WilliamsSweden's Sneakersnstuff and Reebok have teamed up once again, unveiling a limited edition DMX 10 retro runner set to release later this month. Supreme_NYC— Matt Van Swarthout October 16, 2015SoleCollector Put in all my information and it says my card was declined... Using a reversed color scheme, the women's pair uses green upper with yellow accents.The Nike Classic Cortez "Oregon" Pack will be available for men here and for women here on June 1 via Nike SNKRS. Zac DubasikIf you couldn't tell from the pictures, the theme of this Air Max 1 is "gold." Not only is the entire upper coated in a shiny, metallic gold, there are even details linking back to the element gold. I'm going to make you proud man!!!! I'm a fan A photo posted by Kevin Hart on Jan 30, 2017 at 2:37pm PSTShoe: Nike Air Monarch Antonio Brown Slide with my peoples #smilemore .
Adidas is remedying that with yet another restock.Earlier this month, the "Sun Glow" Adidas NMD Primeknit released and sold out almost instantly. Apply Now Brand: adidasPosition: Senior Footwear Designer, BasketballLocation: Portland, ORDescription: Conceptualize and design ranges in the specific category. Brennan Hiro WilliamsBrian Wilson might be out for the 2012 season after undergoing Tommy John surgery in April, but that doesn't mean he's not
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making his presence felt around the ballpark.The San Francisco Giants All-Star star closer was spotted commuting to AT&T Park earlier today wearing the elusive Nike Air MAG. The Adidas Ultra Boost has seen many releases throughout 2016, and the Three Stripes is showing now signs of slowing down any time soon. Completing each shoe is a Vans Syndicate x WTAPS "Craft With Pride" tag on the tongue. The Vans Syndicate x WTAPS Burgundy Bones Pack drops this weekend at select Vans Syndicate accounts, including Berkeley's 510. by Brendan DunneThe navy pair of the Nike HTM Free Mercurial Superfly is releasing after all.The shoe first showed up this week on the feet of international football superstar Cristiano Ronaldo, who had the shoe on during the press conference leading up to his recent FIFA Ballon d'Or award.
The shoe was inspired by the sights and sounds seen and heard during a night out in the city, and features a deconstructed camo colorway, which was designed in New York, and made in Skowhegan, Maine. Extremely limited numbers of the sneaker will drop at 10am local time, on 9/13, at the Liquor Store in NYC, the men's store at Copley Place in Boston, and On Lan Street in Hong Kong. Luis SanchezAmong the several KD VI colorways expected to release
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this summer as part of their debut is this previously previewed "Meteorology" edition.Providing us with a mature and less vibrant take on the "Weatherman" theme made popular as part of Nike Basketball's Lockout Pack back in 2011, the lowcut KD VI features a full black build and a subtle meteorology print in atmos red. EST.Will the shoes be available at additional boutique locations as with previous OVO x Air Jordan launches? So far, none have chimed in with release date info. Smith for USA Today SportsColorway: OKC Homevia Mike Dinovo for USA Today SportsColorway: OKC Away via NBAEColorway: Black/Redvia Thomas Campbell for USA Today SportsColorway: White/Grey-Redvia NBAEColorway: Red/Yellow-Silver via Mark D. Brennan Hiro WilliamsIn this latest video from Jordan Brand, Carmelo Anthony and Dave White discuss their upcoming Melo M9 collaboration over a spot of tea. Bugs Bunny spots the "Shadow" Air Jordan 10 in MJ's trophy room when he visits his home to retrieve his hoop gear, and Bill Murray wears the Air Jordan 2 in the actual Space Jam game.
This continues a recent trend of company stock hits, following a strong start to the year.Over the summer, the Curry line made headlines as social media took aim at the "Chef" Curry 2 Low, calling it a sneaker for dads or nurses. by Steve JaconettaAfter announcing their release date, here's our best look yet at this upcoming Kobe 9.Known as the 'Merlot' edition, this Nike Kobe 9 EM comes in a villain red, metallic gold and
converse low profile
bright crimson colorway. Maybe Y-3s?— Ryan Curtis June 25, 2015SoleCollector all white Ultras— 13 June 25, 2015SoleCollector Saving my money, no need to spend it if you strike out— Jordan Wong June 25, 2015 Reebok announced a new, long-term partnership with Teyana Taylor on Wednesday, naming her an official brand ambassador on the level of other celebrity endorsers like Future and Kendrick Lamar. The sneaker takes its theme very literally, applying a metallic silver panel to the quarter made to look like ice cubes.The shoe will release alongside a special collectible figure limited to just 20 pieces (seen above) and collab basketball.The Bait x Reebok Question "Ice Cold" releases at all Bait stores and online here on Oct. Mismatched laces are also included, with purple working one shoe and neon lacing up the other.Official release details have yet to be announced, be sure to stick with Sole Collector for further details on the release of the "What the Kobe" Zoom Kobe VII.via KicksCrew
Bienvenido neto a comprar zapatos Nike Nike monopolio el sitio web oficial
Czw Cze 14, 2018 08:38
Czw Cze 14, 2018 08:38
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text:
All about Door Draft Stoppers
You can make your own. (Photo Credits)
Doors do not only serve as protection from intruders, they only serve us one of our first lines of defense against bad weather.
The draft outside for instance cannot fully get in the house once doors are closed. However the small gap or crack between the door and the floor can be an opening where draft can get in.
But you do not have to buy for an expensive tool to ensure that draft cannot get inside your doors.
Homestead Bloggers Network featured an instructional guide on how to make your own draft stopper.
"Anyway, the house we live in now is nice and small (the way I like it – less work), and is pretty well insulated. Our bedroom, however, is built above the back porch and gets colder. The closets are NOT insulated because all the cold air seems to be coming from there. Until we can get that fixed, I decided a DIY project was in order."
Read the step-by-step instructions here.
Another way to make one
Locksmith near me Singapore A brown house also featured yet another way to make this DIY project for your home. "A draft stopper, or a draft snake as we called it growing up, is a quick and easy fix for stopping cold air from coming in through door cracks. Using a Door Draft Stopper or a Draft Snake is a great way to lower your heating bill and make sure your home is energy efficient. It just so happens that a door draft stopper is also a very easy DIY sewing project. With some scrap fabric and fifteen minutes, you can stop drafts in your house, too."
Check out the instructional guide here.
Knowledge Weighs Nothing also offered yet another way to do this DIY Door Draft Stopper Project.
"These DIY posts have been really popular, so here's another one to help you keep a little warmer… Below is an excellent tutorial showing how to make your own door snakes/draft stoppers. These door snakes are an excellent way to reduce the draft and cold which can come in through the gap at the bottom of your doors. These draft stoppers are cheap and easy to make, so now's a great time to get making and sort out those drafty doors."
Check out the post here.
So will you make one?
The post Make your own Door Draft Stoppers appeared first on Locksmith Singapore 24 Hours.
from Locksmith Singapore 24 Hours http://sg.24hrlocksmithsingapore.com/make-your-own-door-draft-stoppers/
via Locksmith Singapore
First Seen On Max B Chu's Blog


text:
I have been searching for ages for a simple tray to put on the dining room table to hold the salt and pepper, napkins and water jug. It needed to be small (22x18cm) and I wanted it to have reasonably high sides (about 5cm). Every tray I found was either too big, had shallow sides or was just plain ugly. In the end I decided I would just have a go at making one.
I started with this:
and ended up with this:
It was actually a very easy project, and only took a few days. Most of that time was waiting for glue to dry. I started by gathering up my hoarded supply of thick cardboard. You can find this thick cardboard on the back of some notebooks (it's about 2mm thick). I used to work in an office where the weekly supply of payslips was delivered with this cardboard used as dividers. I saved a huge stack of them, but now I'm down to my last three.
The next step was to cut two base pieces - I cut mine 22x18cm. I smeared a thin coat of UHU All Purpose Glue on one side of each piece, waited 10 minutes, then stuck them together. I used this method of glueing for all the box construction.
I then cut four pieces 18x5cm and four pieces 22.8x5cm. The extra 8mm (the thickness of two layers of card) allows the corners to meet flush. I then used the same glue method above to make two double thickness short sides and two double thickness long sides.
Once the sandwiched layers were dry, I added glue to the edges of the base and the sides, and glued them together. Some masking tape on the corners held the box tight while it dried.
I now had a sturdy box, exactly the right size. The next step was to make it pretty. I used Decopatch supplies to cover the box. I'm reasonably sure you could use regular wrapping paper, tissue paper or fabric and Modgepodge, but Decopatch is what I have readily available at my local craft store. I started with these supplies.
Decopatch is very easy to do. There's a tutorial on their website. You just paint a thin layer of glue (the pink bottle) on a small patch of the item you're covering. You then place a small piece of torn tissue paper (Decopatch recommend about a postage stamp sized piece) on the glue, and smooth it down with a very light coat of glue. You keep applying tissue paper in this way, overlapping each piece, until the whole surface is covered. I ended up doing two layers, as the box looked a little patchy with only one layer. Once the box was thoroughly dry, I used the Satiny Sealing Varnish (the gold bottle) to paint two layers of varnish on the tray.


text:
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text:
Ok, this has been the strangest week and its only Wednesday. I kind of feel like I might need someone to send in reinforcements just to get me through the rest of the week. Help. I had all these great blog post ideas, but those will have to wait for now, seeing as how my brain is just about fried, and its only Wednesday. Again, help.
Also, just to warn you, I didn't proofread and edit today. I'm just really tired.
Also, just to warn you, I didn't proofread and edit today. I'm just really tired.
Since I don't want to leave you all hanging around waiting for me, let me give you a little update on this week so far. I'll call this little synopsis "Eden's Whacked Out Life; Where are the cameras?" Seriously, where are the cameras? I have got to be in some twisted reality show version of "The Truman Show," because this shit just cannot be real.
Saturday: If you read my last blog post, you will remember that this was the day that I got underdressed and went to a really fancy hotel so that I could watch some guy pee.
Sunday: I'm driving to the grocery store and my phone rings. I look at the number and my heart skips eleven beats, because it looks like my brother's phone number. But it can't be….right? I haven't talked to him in 15 months. If you remember from the post "That Post Where I Finally Talk About My Brothers," we had a big falling out after I stopped speaking to my parents. This brother particularly was the worst. Hundreds of text messages and voicemails telling me to kill myself, to the point where I threatened to press harassment charges on him. The last conversation we ever had went like this Him: Do the world a favor and kill yourself." Me: "Nah, I wouldn't want to spend all of eternity with you," followed by this text, the last thing I ever said to him.
|He was warning me that if I didn't talk to my mother it would be the last thing I did
He of course continued to text me for weeks on end, but I never responded and eventually he got bored. So, this CANNOT possibly be him calling me, right? I answer and hear "Hey Eden." Yup, its him.
Me: "Yea."
Him "So, what's up?"
Me: "What do you want?"
Him: "Do you want to come over to mom and dad's to talk?"
Me: "About what? Actually, no don't answer that. We don't have anything to talk about. I heard enough of what you had to say 16 months ago to know that I don't need anyone like you in my life."
Him: "You're my sister."
Me: "Yea, I was, and as my brother, I never would have thought you would have treated me the way you did, but you showed me your true colors and they were ugly as hell. I'm happy now, for the first time in my life, I'm really happy. I'm sorry, but I don't want you in my life, now, or ever."
Then I hung up the phone.


text:
'Sorry, Apparently, the Computer Says No!' Customer Retention and Advocacy Expert Gareth Jones of Deighton Consultants Illustrates Why Flexibility Is Key in Ensuring Customer Retention
Byline: Gareth Jones
In a recent survey in Business Matters, more than 60% of business owners said their relationship with their bank had worsened over time and around half said they are "frustrated" by their bank's seeming inability to help them.
Reading this article reminded me of a discussion I had with some friends of mine while enjoying the after-match celebrations in Cardiff following the victory over England. Somehow we got on to the topic of the service provided by the banks. While simultaneously praising and criticising the various banks we are with, one of our party stayed quiet. When we asked him what he thought, he simply said: "I've a story that will top everything!" As a result of his current mortgage deal coming to a close, my friend - let's call him Jim - had decided to re-mortgage with the bank where he had held his business and personal accounts for several years. "I just thought it would make life easier," he told us.
Jim went on to explain that his initial application was made some 12 months before his mortgage deal expired and he provided all the information requested - most recent accounts, personal details etc. (which the bank already had, by the way). After several weeks delay, he was told that having taken everything into consideration, his salary fell short of the required amount.
Slightly surprised at this, he agreed to raise his salary as soon as the mortgage was agreed and to satisfy the underwriters, had this confirmed by his accountant, with the increase scheduled to start alongside the new mortgage.
Assuming this was the end of the matter, he told us, "You wouldn't believe it, but after another delay, I got a call from the bank saying that before they could agree the mortgage, they would need the most up-to-date set of company accounts!" As we started empathising over the delay, Jim said: "Hold on, I haven't finished yet!" It appears that after sending the most recent accounts through and waiting several weeks, he was told that the mortgage could not be agreed as these latest accounts did not show the increase in salary. …


text:
Our Location
7701 Broadway, Ste 20, San Antonio, TX, 78209
Monday - Friday
5:00pm to 10:00pm
5:00pm to 10:00pm
French Fusion Cuisine 2017 READER'S CHOICE AWARD for Best French Restaurant by SA Express News & MySA.com
Frederick Costa continues to write his love sonnets in fine cuisine and wine and the latest creation is not only a new look for Frederick's Restaurant — complete with a fresh menu featuring his latest French and Asian favorites offering a variety of tastes to try.
Frederick, named as one of the top 10 Chefs in San Antonio in 2010*, has a passion for fusing his French and Asian culinary skills creating signature dishes that blend his roots in both cultures.
Frederick's was named #4 in San Antonio for good restaurants on a business trip (USA Today).
The food is inventive, yet traditional. The wines are his own favorites. The ambience is romantic and warm. Welcome.
*Scene in S.A. Magazine
7701 Broadway, Ste 20, San Antonio, TX, 78209
5:00pm to 10:00pm
5:00pm to 10:00pm


text:
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text: For a long time, one of my favorite brands was the quirky, urban shoe design brand, Rocket Dog. I've been a fan and loyal customer for many years and currently have 5 pairs of their shoes and boots and also buy them for my daughter. As my favourite brand, I have made an effort to … Read More →


text:
He did it, and I couldn't be prouder of my hubby. Almost six months of studying, nine months of waiting and the day finally came. He is a District Chief for the Houston Fire Department. The day was a great day celebrating our #1 guy. We ate at Benihanna downtown Houston, the same place we ate almost sixteen years ago when he first got into the fire department.
Joe, you are an Amazing husband, father, friend. We couldn't be more prouder of how hard you work for your family and what you accomplish through the Grace of God. Thank you!!!!! We love you so much!!!!
Pinning the badge on my hubby. Proud wife moment!!!
The Big Bosses and Joe
Joe's parents celebrating the day with us.
Mia is a little excited and proud of her daddy too.


text:
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November 14, 1985
MECHANICAL TECHNOLOGY INCORPORATED, PLAINTIFF-APPELLEE, CROSS-APPELLANT,v.RYDER TRUCK LINES, INC., DEFENDANT-APPELLANT, CROSS-APPELLEE
Ryder appeals from a judgment of the United States District Court for the Northern District of New York (Roger J. Miner, Judge), holding Ryder liable for damage to computer equipment shipped by MTI. MTI cross-appeals from the district court's denial of its motion to amend the judgment by adding pre-judgment interest. Affirmed in part, reversed in part and remanded. Judge Winter concurs in the result in a separate opinion.
Author: Kaufman
Before: KAUFMAN, MESKILL, and WINTER, Circuit Judges.
KAUFMAN, Circuit Judge:
Since the dawn of this century, the highways of our nation have served as the arteries of a burgeoning interstate commerce. Although their wares may now be products of the technological revolution, commercial shippers still turn to trucks for safe and inexpensive transport. Similarly, shippers have for decades enjoyed the opportunity to contractually choose between full recovery for damage and low shipping costs.
In this appeal, we are called upon to interpret the explicit and implicit terms of such a contract. A shipper, Mechanical Technology Incorporated ("MTI"), sued a common carrier, Ryder Truck Lines, Inc. ("Ryder"), for damage to MTI computer equipment shipped via Ryder trucks. Ryder appeals from a judgment awarding damages to MTI in the amount of $171,360. Although agreeing that Ryder is liable, we hold that Ryder's liability was contractually limited, and consequently reduce MTI's award to $22,175. We also believe that a cross-appeal by MTI for pre-judgment interest is without merit.
The facts of this commercial dispute are crucial to the resolution of the legal questions presented. We therefore carefully delineate the factual setting of this appeal.
Ryder is a national trucking firm. As authorized by 49 U.S.C. § 10730, Ryder has properly filed and published with the Interstate Commerce Commission a tariff listing several freight rates available to shippers of data processing equipment.*fn1 Each rate carries a corresponding level of liability per pound, which is termed a "released rate." A higher freight rate, therefore, secures a higher level of liability. The tariff expressly provides that if the shipper fails to state a released rate, then the shipment is deemed released at a rate of $5.00 per pound. Similarly, a released rate of $5.00 is presumed if the shipper designates a level of liability in excess of $25.00 per pound.
To fulfill its contractual requirements with the United States Air Force, MTI purchased and readied for shipment twelve items of computer equipment. The total weight of the pieces was 4,435 pounds. Douglas Halgren, and MTI supervisor, selected Ryder to transport the equipment from Latham, New York, to Kelly Air Force Base in San Antonio, Texas. Ryder, however, used only ordinary freight trailers, which lacked the means of adequately securing goods against damage in transit. Generally, computer goods are shipped via air-ride vans equipped with an elaborate suspension system. Although warned by fellow MTI employees that Ryder did not use air-ride vans, Halgren insisted on contracting with Ryder for shipment of the computer equipment to San Antonio.
In preparation for shipment, another MTI employee, Michael Ciani, prepared a shipping order individually listing the pieces of computer equipment. Ciani marked the shipping order "Prepaid" and "Insure for $238,000." Working from the shipping order, MTI's shipping clerk, Bernard Izzo, completed a bill of lading on one of MTI's own forms. Near the top of the bill of lading was a notice in small but readable print: "RECEIVED, subject to the classifications and tariffs in effect on the date of the receipt by the carrier. . . ." In addition to describing the goods to be shipped, Izzo also made the notations "Prepaid" and "Insure for $238,000" on the form. Izzo, however, did not fill in the section bearing this legend:
NOTE--When the rate is dependent on value, shippers are required to state specifically in writing the agreed or declared value of the property. The agreed or declared value of the property is hereby specifically stated by the shipper to be not exceeding per
Ryder's driver accepted the goods on February 23, 1981, and signed the bill of lading, with the spaces for released value left blank.
The equipment, carried solely by Ryder trucks, arrived in Texas in damaged condition. MTI thereupon purchased replacement computer parts to meet its contractual obligations at an additional cost of $171,360.
On August 13, 1982, MTI filed a complaint in New York Supreme Court, alleging breach of contract and negligence by Ryder. On the basis of diversity jurisdiction, Ryder successfully petitioned for removal of the action to the United States District Court for the Northern District of New York. At trial, Ryder made an offer of proof concerning its tariff for computer equipment. The district judge, however, rejected the ...
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text:
The title developed by Japanese designer SWERY is known for it's insane script, voice acting and general feel. SWERY has now stated that his team at Access Games are planning some new titles in the series.
Yeah, and while they are at it, release the PS3 version for us North Americans... please :)


text:
Tag: Canning Supplies
Do you want to learn your grandma's canning recipe for homemade strawberry jam? If you are new to canning it is important to have all of the right canning supplies before you begin. We here at Blain's Farm & Fleet want to help you get started with our handy guide to canning. Canning Supplies: Canning Rack If you are planning on water bath canning, make sure that you have a(…)


text:
Nos. 03-892 and 03-907
In the Supreme Court of the United States
Acting Solicitor General
Counsel of Record
Department of Justice
Washington, D.C. 20530-0001
(202) 514-2217
Petitioner's opening brief demonstrated (Br. 14-25) that federal tax law requires respondents to include in their gross income the entire amount of their litigation proceeds, including the portion paid as fees to their attorneys. It is a fundamental rule of federal tax law that income is taxed to the person who earns it, even when it is paid at that person's direction to someone else. Lucas v. Earl, 281 U.S. 111, 114-115 (1930). It is similarly well settled that, when a debt owed by a taxpayer is satisfied by a direct payment from a third party to the taxpayer's creditor, the taxpayer receives "income" in the amount of the discharged debt. Old Colony Trust Co. v. Commissioner, 279 U.S. 716, 729 (1929). Thus, as the Court explained in Helvering v. Horst, 311 U.S. 112, 116-117 (1940), "he, who owns or controls the source of the income, also controls the disposition of that which he could have received himself and diverts the payment from himself to others as the means of procuring the satisfaction of his wants." Accordingly, where a taxpayer assigns to another "an obligation to pay compensation" to the taxpayer, he has "divert[ed] the payment from himself to others as the means of procuring the satisfaction of his wants" and is subject to tax on the diverted proceeds. Id. at 117, 118. Those federal tax law principles require the inclusion of the full amount of litigation proceeds in respondents' gross income.
A. Federal Tax Law Makes Clear That Respondents Earned All Of The Income Recovered On Their Causes Of Action
Respondents, and respondents alone, suffered the injuries that gave rise to their causes of action; they were the sole owners of their causes of action; and they had the sole right to assert and settle their claims. Their injuries gave rise to claims for recoveries in the form of taxable income, and the settlement proceeds represent the value given as compensation for those injuries and in exchange for the dismissal of their claims. Respondents therefore owned, controlled, and were "the source of the income" at issue. Horst, 311 U.S. at 116.
This would all be undisputed if the attorneys had charged an hourly fee, and nothing in the Internal Revenue Code authorizes radically more favorable tax treatment for those who opt for contingent-fee arrangements. Through their contingent-fee agreements, respondents "divert[ed] the payment [of a portion of that income] from [themselves] to others as the means of procuring the satisfaction of [their] wants," namely legal services. Horst, 311 U.S. at 117. Accordingly, the proceeds from respondents' litigation awards are "recover[ies] of lost income; the attorney fees [they] paid represent expenses incurred in generating that income"; and "[l]ike any other taxpayer, [respondents] must report the entire amount as gross income." Hukkanen-Campbell v. Commissioner, 274 F.3d 1312, 1314 (10th Cir. 2001), cert. denied, 535 U.S. 1056 (2002); accord Raymond v. United States, 355 F.3d 107 (2d Cir. 2004), petition for cert. pending, No. 03-1415 (filed Apr. 9, 2004); Young v. Commissioner, 240 F.3d 369 (4th Cir. 2001); Baylin v. United States, 43 F.3d 1451 (Fed. Cir. 1995).
Respondents and their amici raise a number of arguments in an attempt to evade these controlling principles of federal tax law. All of those arguments are unavailing for the reasons described below and in petitioner's opening brief (Br. 26-35).
1. Respondents' attorneys were not co-owners, partners, or joint venturers in respondents' causes of action
A central theme running through the briefs of respondents and their amici is that the relationship between client and attorney under a standard contingent-fee agreement is that of partners or joint venturers wherein the client contributes the capital (in the form of his cause of action) and the attorney contributes his professional services. According to this theory, the amounts recovered on respondents' causes of action represented the proceeds from that partnership and are jointly owned by respondents and their attorneys. But the basic premise of that argument is patently erroneous.1
"A profit-oriented business arrangement is not a partnership unless two or more of the participants have an interest in the partnership as proprietors." 1 William S. McKee et al., Federal Taxation of Partnerships and Partners ¶ 3.02[5], at 3-15 (3d ed. 1997) (emphasis added) (citations omitted). The relationship of attorney and client, however, is one of agent and principal, not co-proprietorship. As stated in the Restatement (Third) of the Law Governing Lawyers, ch. 2 introductory note (2000), the client-lawyer relationship is "a voluntary arrangement in which an agent, a lawyer, agrees to work for the benefit of a principal, a client. A lawyer is an agent." See Ferri v. Ackerman, 444 U.S. 193, 204 (1979) (an attorney's "principal responsibility is to serve the undivided interests of his client"); NAACP v. Button, 371 U.S. 415, 460-461 (1963) ("[t]he relation of attorney and client is that of master and servant in a limited and dignified sense") (citation omitted). Moreover, while lawyers, as agents, owe a fiduciary duty to act in the best interests of their clients, clients owe no such reciprocal duty to their lawyers. See Restatement (Third) of the Law Governing Lawyers, ch. 2, § 17 & cmt. a (describing clients' duties to lawyer as "less extensive" and principally contractual and related to the payment of fees).
These authorities confirm that the relationship of attorney and client, under a contingent-fee agreement or otherwise, is one of principal and agent. It is not and cannot be a joint business undertaking. Indeed, Rule 5.4(b) of the Model Rules of Professional Conduct provides that "[a] lawyer shall not form a partnership with a nonlawyer if any of the activities of the partnership consist of the practice of law." Both California and Oregon have adopted this Rule. See Cal. R. Prof'l Conduct 1-310 (2004); Or. Code of Prof'l Responsibility DR 3-103 (2004).
Respondents ignore these authorities in baldly proclaiming that a contingent-fee agreement renders a client and his attorney partners or joint venturers. They cannot even point to any language in their respective contingent-fee agreements that purports to establish such a relationship. See J.A. 94-97, 99-105. Nor is there anything in the provisions of the applicable state law that supports respondents' anomalous position that their relationship with their attorneys was that of partners or joint venturers.
Respondent Banks's contingent-fee agreement is governed by California law. In Benci-Woodward v. Commissioner, 219 F.3d 941 (2000), cert. denied, 531 U.S. 1112 (2001), the Ninth Circuit examined the respective rights of attorneys and their clients under a contingent-fee agreement and held that California law "does not confer any ownership interest upon attorneys or grant attorneys any right and power over the suits, judgments, or decrees of their clients." Id. at 943. Indeed, the Supreme Court of California has made clear that, "in whatever terms one characterizes an attorney's lien under a contingent fee contract, it is no more than a security interest in the proceeds of the litigation," and "do[es] not operate to transfer a part of the cause of action to the attorney." Isrin v. Superior Court, 403 P.2d 728, 732 (1965) (citation omitted). It is thus apparent that respondent Banks and his attorney were not partners or joint venturers, but rather that their relationship at the time the attorney's fees were paid was that of principal-agent and debtor-creditor.
Similarly, Oregon law, which governs respondent Banaitis's contingent-fee agreement, does not confer on the attorney any ownership interest in his client's cause of action or otherwise give the attorney control over the action. Rather, like most States, Oregon grants an attorney a lien on the litigation and its proceeds to secure payment of his fees. Or. Rev. Stat. § 87.445 (2003). Banaitis's assertion (Br. 33-36) that Oregon's attorney lien statute somehow precludes a party from settling or otherwise resolving his case without his attorney's consent is mistaken. See Adams v. Transamerica Ins. Group, 609 P.2d 834, 837 (Or. Ct. App. 1980) ("[A]n attorney has no interest in a settlement agreement independent of that of his client. If the attorney is entitled to attorney's fees he may maintain an action against his client for those fees. However, he does not have standing to maintain this suit" challenging the settlement.) (footnote omitted); Smith v. United States Nat'l Bank, 615 P.2d 1119, 1123 (Or. Ct. App. 1980) ("Even where an attorney has an interest in litigation, such as a contingent fee contract, * * * the client is under no duty to appeal an adverse trial court judgment.").
As with California's and most other States' attorney lien statutes, moreover, Oregon's statute draws no distinction between fees due under an hourly-fee arrangement and those due under a contingent-fee agreement; both types of attorneys receive the same lien. Accordingly, Oregon's attorney lien statute can provide no basis for treating contingent-fee lawyers, but not hourly-rate lawyers, as partners or co-owners in their clients' causes of action, a result that would also run afoul of Oregon's code of ethics. Or. Code of Prof'l Responsibility DR 3-103. Moreover, the concepts of lienholder and property owner are mutually exclusive, since a property owner cannot have a lien on his own property. See Black's Law Dictionary 933 (7th ed. 1999) (defining "lien" as "[a] legal right or interest that a creditor has in another's property") (emphasis added).
Banaitis's reliance (Br. 33) on the decision in Potter v. Schlesser Co., 63 P.3d 1172 (Or. 2003), is misplaced, because Potter does not purport to hold that a contingent-fee attorney acquires a partnership or joint venture interest in the client's cause of action. Rather, in Potter, the Oregon Supreme Court held that the term "lien" in Oregon Revised Statute Section 87.445 is to be given "its ordinary meaning," namely a "charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law." 63 P.3d at 1174 (citation omitted). The court went on to hold that the statutory attorney's lien attaches not just to the proceeds of a lawsuit, but to the lawsuit itself. Thus, the attorney in Potter, the Court held, could enforce the lien against the defendant, although the defendant had paid the entire amount of the judgment to the plaintiff, who failed to pay the attorney. Potter thus stands for no more than the proposition that an attorney in Oregon can recover his fee- hourly or contingent-from a third party who, in contravention of the attorney's lien, pays the entire amount of a judgment or settlement to the attorney's client. That holding preserves an Oregon attorney's rights as a secured creditor; it in no way lends support to Banaitis's claim that his attorney was not his creditor, but instead, was his partner or co-venturer.
2. The attorneys were not the "true earners" of the litigation proceeds
Equally without merit is the related theory advanced by respondents and many of the amici that respondents' attorneys were the true "earners" of the contingent-fee portion of the recoveries by virtue of the provision of their legal services, and thus that only the attorneys realized income from those recoveries. See, e.g., Banks Br. 4, 6-7; Banaitis Br. 23-24. Respondents' argument does not withstand analysis.
First, respondents ignore the fact that the legal right to recover damages arises at the time of the actionable injury, not when that right is subsequently reduced to judgment with (or without) the assistance of an attorney. Under the law, a plaintiff's right to income is complete when an actionable injury is suffered, because it is the injury that gives rise to the cause of action and provides the measure of the damages recovery to which the plaintiff is entitled. To be sure, an attorney's services may help enforce that income entitlement, but the attorney does not earn the damages award; the plaintiff had already "earned" his or her entitlement to that award by suffering injury before the attorney even appeared on the scene. What the attorney "earns" is merely the right to be paid for services rendered.
Second, the factual premise of respondents' argument- that they could not have recovered on their causes of action absent the services of their attorneys-is pure speculation. Many litigants successfully represent themselves, and there is no basis to determine from the record in these cases whether respondents could have achieved the same or similar recoveries had they represented themselves.
Third, and most importantly, even assuming that respondents would not have been able to obtain their recoveries without their attorneys' services, that would not render the contingent-fee portion of their recoveries excludable from their gross income. If respondents had desperately needed attorneys to bring their claims and had employed those attorneys on an hourly-fee basis and then used a portion of their recoveries to pay the fees, it would be undisputed that the full amount of the recovery would be taxable income. See Kenseth v. Commissioner, 259 F.3d 881, 883 (7th Cir. 2001). The extent to which respondents' recoveries were dependent on the skills of their attorneys, therefore, provides no basis for the exclusion from income sought by respondents.
Indeed, there are numerous situations in which portions of a taxpayer's income are attributable to the skilled services of an agent or assistant employed by the taxpayer. Actors and professional athletes, for example, customarily employ skilled agents to negotiate contracts for them and pay those agents a percentage of the contract amount as a commission. Construction companies employ skilled sub-contractors who are entitled to be paid out of the proceeds of the construction project, a right secured by statutory liens on the project. Many companies use commissioned sales staff to sell their products, and many individuals turn over control of their financial assets to investment advisors whose compensation is a percentage of the value of the assets under their management or the investment income generated. Respondents' theory would mean that such taxpayers may exclude from their gross incomes the payments made to such agents, but there is no authority for that proposition, which would upset long-established principles of federal tax law. The Internal Revenue Code does not mandate more favorable treatment of those who contract for services-whether financial or legal advice-on a commission basis, rather than on an hourly-fee basis.
Thus, for example, a relatively unknown author who employs a leading literary agent for a ten percent commission to secure a publishing contract and who obtains a $1 million book contract largely because of the agent's efforts would realize gross income of $1 million. The $100,000 commission paid to the agent would be an expense of producing that income, just as if they had agreed to a non-contingent flat fee of $100,000 or an hourly rate that produced a $100,000 fee. In each case, that expense, to the extent permitted by the Internal Revenue Code, may be deducted in computing the author's taxable income. But the author could not seriously contend that he realized gross income of only $900,000, because the agent was the "true earner" of the portion of the contract proceeds ($100,000) paid in commission. See Kenseth, 259 F.3d at 883 ("If a taxpayer obtains income of $100 at a cost in generating that income of $25, he has gross income of $100 and a deduction of $25, * * * yielding taxable income of $75 * * *. If, therefore, for some reason the cost of generating the income is not deductible, he has taxable income of $100."). Respondents' attorneys were, in essence, commissioned agents for respondents, and there is no logical reason why their commissions should receive different tax treatment than the commissions paid to other types of agents or more favorable treatment than attorneys paid hourly fees.
3. Respondents had sufficient control over the contingent-fee portion of the proceeds to warrant its inclusion in their gross income
Respondents also err in contending that they did not realize income from the proceeds paid directly to their attorneys because, under their contingent-fee agreements, they never had the right or ability to receive or control that income. As an initial matter, respondent Banks (Br. 11-12) overstates the degree of control necessary to warrant treating the contingent-fee portion of the recoveries as income to respondents. Relying, inter alia, on Corliss v. Bowers, 281 U.S. 376, 378 (1930), and Commissioner v. Indianapolis Power & Light Co., 493 U.S. 203, 209 (1990), he asserts that the contingent-fee portion can only be treated as income to him if at all times he exercised "complete dominion" or "unfettered command" over that portion of his claim. But the cases on which he relies either did not involve a purported transfer or assignment of income at all, or refer to the degree of control necessary before the attempted transfer occurs. Respondents plainly exercised "complete" and "unfettered" control over their causes of action prior to the execution of the contingent-fee agreements. Indeed, the very fact that they promised to pay a percentage of any income they might receive as consideration for legal services conclusively demonstrates that they exercised such unfettered control and dominion.
It makes no sense to ask whether respondents continued to exercise complete or unfettered control over the contingent-fee portion of their income after they claim to have transferred control over or otherwise to have assigned that portion to their attorneys. Rather, as explained in petitioner's opening brief (Br. 31-32), this Court's decision in Commissioner v. Sunnen, 333 U.S. 591 (1948), provides the framework for evaluating such claims. There, the Court stated, "[a]s long as the assignor actually earns the income or is otherwise the source of the right to receive and enjoy the income, he remains taxable," notwithstanding any attempted assignment or transfer. Id. at 604. Here, the "source of the right to receive and enjoy the income" was the injury suffered by respondents that gave rise to a cause of action under applicable law. Respondents are the sole source of that right, and are therefore taxable on the income it produced.
"The crucial question," the Sunnen Court further held, "remains whether the assignor retains sufficient power and control over the assigned property or over receipt of the income to make it reasonable to treat him as the recipient of the income for tax purposes." 333 U.S. at 604; see Horst, 311 U.S. at 117-118 (where the taxpayer has "divert[ed] payment from himself to others as the means of procuring the satisfaction of his wants," he is taxable on the diverted proceeds). Here, respondents plainly retained "sufficient power and control" to warrant including the contingent-fee portion of the recovery in respondents' gross income.
A client who hires an attorney to prosecute a cause of action for him-whether on a contingent or an hourly-fee basis-retains ownership and control over his lawsuit. See Chauffeurs, Teamsters & Helpers Local No. 391 v. Terry, 494 U.S. 558, 568-569 (1990) ("a client controls the significant decisions concerning his representation" and "can fire his attorney if he is dissatisfied with his attorney's performance"). Indeed, regardless of the fee arrangement, all attorneys have an overriding fiduciary duty to act only in the best interests of their clients. Thus, it was respondents, and not their attorneys, who at all times owned and controlled the disposition of their causes of action, and it was therefore respondents who "earned" the entire amount of the litigation proceeds, including the portion that was paid as fees to their attorneys. As was the case with the father in Helvering v. Horst, supra, who gave up his right to the interest derived from his bond coupons but retained control of the bonds themselves, respondents, by retaining ultimate control of their causes of action, at all times "controlled the source of the income." Raymond, 355 F.3d at 116. "[They] could have fired [their] attorney[s]. [They] could have dropped [their] case[s]. [And they], and only [they], had the power to authorize a settlement of [their] claim[s]." Ibid.; accord Kenseth, 259 F.3d at 884. Because respondents controlled the source of the income, as a matter of federal tax law, the entire amount of litigation proceeds is includable in their gross income.2
4. The assignment-of-income doctrine is not limited to so-called "anti-abuse" situations or assignment of already-ascertained income
Banks argues (Br. 23) that the government's case rests not upon any provision of the Internal Revenue Code, but instead "relies exclusively upon a judicially-created anti-abuse rule known as the assignment of income doctrine." That is incorrect. The government's position rests ultimately on 26 U.S.C. 61, which provides that "[e]xcept as otherwise provided in this subtitle, gross income means all income from whatever source derived." See Pet. Br. 15. It is Section 61 that mandates inclusion of the entire proceeds of respondents' recoveries in their gross incomes. The assignment-of-income doctrine, which is based on a long- standing construction of that statutory language, provides a complete answer to respondents' claim that the contingent-fee agreements operated to transfer or assign a portion of the proceeds of their causes of action to their attorneys, thereby diverting the incidence of tax.3
Respondents misstate both the intent and scope of the assignment-of-income doctrine. Banks characterizes it (Br. 23-24, 28) as solely an "anti-abuse" rule, and Banaitis similarly argues (Br. 23) that the assignment-of-income doctrine does not apply here because the contingent-fee agreement was "an arms-length transaction between unrelated parties in a commercial setting, for valuable consideration." As our opening brief explained (Br. 33), however, this Court has expressly rejected respondents' assumption that the assignment-of-income doctrine applies only to tax-motivated or bad faith transfers. In Lucas v. Earl, the Court expressly declined to consider the motives for the assignment of the taxpayer's income, stating that "no distinction can be taken according to the motives leading to the arrangement by which the fruits are attributed to a different tree from that on which they grew." 281 U.S. at 115. As the Second Circuit noted in Raymond, the Earl Court recognized that resting application of the assignment-of-income doctrine on the motives of the parties would be "to court procedural unmanageability" by placing the courts "in the position of having to divine the unknowable." 355 F.3d at 117. The fundamental rule of Earl is that income is to be taxed to the person who earns it even where it is diverted in such a manner that it never vests in the taxpayer. It is of no moment why a taxpayer made an anticipatory assignment of his prospective income.4
Banaitis seeks to deflect the assignment-of-income doctrine by contending (Br. 24) that the income in Earl and Horst "had already been earned" or "was virtually certain to be earned." He urges that the assignment-of-income doctrine does not apply where the recovery is "an intangible, contingent expectancy." Ibid. (citation omitted). But the assignment-of-income doctrine is not so limited. Rather, as the Second Circuit pointed out in Raymond:
[In Earl], the husband and wife agreed to co-own any future income each might earn. There existed no sum certain at the time of the agreement, and yet once the husband earned income and claimed that a portion of it had shifted to his wife, the Court found it to be an improper assignment of income. In both this case and Earl, the taxpayers assigned the right to receive a portion of as yet unascertained income to another.
355 F.3d at 116-117. The assignment-of-income doctrine thus does not rest on the certainty of the income assigned.
Banks (Br. 30-31) and Banaitis (Br. 25) argue that a private ruling issued by the IRS, P.L.R. 200427009 (Mar. 19, 2004), confirms that "motivation is a significant factor" in applying the assignment-of-income doctrine and that the doctrine generally does not apply to a transfer of a claim in litigation because "such claims are contingent and doubtful in nature." Private rulings are unofficial administrative interpretations issued by branch offices that "may not be used or cited as precedent," 26 U.S.C. 6110(k)(3), and are not representative of the published position of the IRS. In any event, that ruling did not involve a purported assignment under a contingent-fee agreement and does not support respondents' arguments that lack of a tax-avoidance motive or uncertainty as to the amount of future income precludes application of the assignment-of-income doctrine. The IRS's official position that the portion of litigation proceeds used to pay attorney's fees is includable in the litigant's gross income is embodied in a Revenue Ruling, which (unlike the private letters cited by respondents) does represent the published position of the IRS on this question. See Rev. Rul. 80-364, 1980-2 C.B. 294, Situation 1 (where employee's damages award includes attorney's fee component, "the full amount of the award is income to the employee and must be included in the employee's gross income").
5. There is no proscription in the tax law against the purported "double taxation" at issue here
Banks (Br. 35-38) and Banaitis (Br. 30) both argue that the contingent-fee portion of their recoveries cannot be included in their gross income because that would result in "double taxation," i.e., the same income would be taxed to two separate individuals. As petitioner's opening brief explains (Br. 34-35), there is no "double taxation" involved in these cases. The fact that the full award is taxable to the client and the fees are income to the attorney is neither anomalous nor harsh, but is instead a commonplace feature of the Internal Revenue Code. If, for example, a taxpayer hires an investment advisor and agrees to pay him a fee equal to a percentage of the investment income generated by the advisor, the full investment income is taxable to the investor and the percentage-based fee is taxable to the advisor. Moreover, the fees paid to the advisor would be a miscellaneous itemized deduction under 26 U.S.C. 67(b) and 212(1) and, as such, would not be allowable for purposes of the Alternative Minimum Tax (AMT). See 26 U.S.C. 56(b)(1)(A)(i). More broadly, whenever a taxpayer uses taxable income to purchase goods or services for which Congress has either not allowed or limited a deduction, the original income will be taxed to the purchaser, and the seller will pay taxes on his income from the sale. But there is no "double taxation" in any meaningful sense.
Respondents' reliance on authorities holding that double taxation requires a clear expression of congressional intent is therefore misplaced. Those authorities concern true double taxation, i.e., the taxation of the same income twice -not the taxation of two income events recognized by different taxpayers, although involving the same funds. See, e.g., Banks Br. 35-38; Banaitis Br. 30. In any event, even if a clear expression of congressional intent were required here, it would be provided by the AMT's clear prohibition of any deduction for miscellaneous itemized deductions. See 26 U.S.C. 56(b)(1)(A)(i).
B. The Contingent-Fee Portion Of The Proceeds Is Includable In Respondents' Gross Income Because It Satisfied Respondents' Debts To Their Attorneys
This Court established in Old Colony Trust, 279 U.S. at 729, the fundamental federal tax principle that when a debt owed by a taxpayer is satisfied by a direct payment from a third party to the taxpayer's creditor, the taxpayer receives "income" in the amount of the discharged debt. That principle independently compels reversal here. The fee agreements executed by respondents gave rise to a contingent debt owed by them to their attorneys, which became a fixed debt when respondents recovered on their causes of action.
Respondents (Banks Br. 34-35; Banaitis Br. 16-17) and some of their amici assert, however, that there was no debtor-creditor relationship between respondents and their attorneys. They rely on the fact that respondents' attorneys would not have been entitled to any payment if respondents had not recovered on their causes of action, and they assert that respondents had no personal liability for the amounts due their attorneys under the fee agreements. Those arguments are meritless. The critical question is the relationship between respondents and their attorneys at the time the payments to the attorneys were made. At that time, respondents' contingent obligations had become fixed. That, after all, is the reason the payments were made: Respondents were required by the terms of their fee agreements to pay specified portions of their recoveries to their attorneys. If respondents had received and retained all of the proceeds without paying the fees owed their attorneys, respondents would have been personally liable in the amount of the unpaid fees. Thus, the direct payment to respondents' attorneys by third parties discharged respondents' debts to their attorneys, and respondents thereby realized income in the amount of the discharged debts. See Old Colony Trust, 279 U.S. at 729; Hukkanen-Campbell, 274 F.3d at 1313-1314; Baylin, 43 F.3d at 1454.
That the relationship between respondents and their attorneys was that of debtor-creditor is confirmed by the lien granted under state law to respondents' attorneys. A lien is defined as "[a] legal right or interest that a creditor has in another's property, lasting usu[ally] until a debt or duty that it secures is satisfied." Black's Law Dictionary 933 (7th ed. 1999) (emphases added). A lien thus is an interest in a debtor's property that is granted to his creditor as security for payment of the debt. See Kenseth, 259 F.3d at 883. If, as respondents and most of their amici assert, the contingent-fee agreements entered into by respondents gave rise to no indebtedness running between respondents and their attorneys, there would be no basis for the liens granted to the attorneys under state law.
It is undisputed that an amount owed by a client to his attorney under an hourly-fee arrangement is a debt running from the client to his attorney. Since the attorney lien statutes in both California and Oregon, as well as those in other States, provide precisely the same lien to attorneys paid under an hourly-fee arrangement and attorneys paid under a contingent-fee arrangement, there is no logical basis for respondents' conclusion that while hourly fees owed by a client to his attorney constitute a debt of the client, fees owed by a client to his attorney under a contingent-fee agreement do not.
C. Any Inequity That May Result From The Application Of The AMT To Contingent Attorney's Fees Is Within The Sole Power Of Congress To Remedy
Banks argues (Br. 21) that the inclusion in gross income of the attorney's fee portion of a recovery leads to "harsh and absurd results," in that taxes and attorney's fees could conceivably consume all of a client's recovery. This argument is misconceived, because any such "harshness" is a product of application of the AMT in this context, which is mandated by the plain language of the statute. Respondents' legal ex-penses are deductible under 26 U.S.C. 212(1), as "ordinary and necessary expenses paid or incurred * * * for the production or collection of income." Expenses deductible under Section 212(1) are itemized deductions, see 26 U.S.C. 211, and are classified as "miscellaneous itemized deductions" by 26 U.S.C. 67(b). Section 56(b)(1)(A) expressly provides that, in computing the AMT, "[n]o deduction shall be allowed * * * for any miscellaneous itemized deduction." There is no valid basis for disregarding the plain language of these directly applicable statutory provisions. If the application of the AMT has the potential to lead to harsh results in some cases, it is a matter that only Congress has the power to remedy. See Commissioner v. Asphalt Prods. Co., 482 U.S. 117, 121 (1987) ("[j]udicial perception that a particular result would be unreasonable may enter into the construction of ambiguous provisions, but cannot justify disregard of what Congress has plainly and intentionally provided"); Alexander v. IRS, 72 F.3d 938, 946-947 (1st Cir. 1995) (recognizing that, although application of AMT to legal fees may result in a seemingly unfair outcome, "there is [no] inequality of treatment as compared to similarly situated taxpayers [and] * * * [i]t is well established that equitable arguments cannot overcome the plain meaning of the statute").
Congress, moreover, is aware of concerns over the potential application of the AMT to litigation proceeds. It is currently considering proposed legislation that would provide an above-the-line deduction under 26 U.S.C. 62 (2000 & Supp. I 2001)-i.e., a deduction that would be allowed in computing the AMT-for "attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination." Jumpstart Our Business Strength (JOBS) Act, H.R. 4520, 108th Cong., 2d Sess. § 643 (2004). That proposed legislation has been passed by the Senate and referred to the conference committee. See Bill Summary and Status for the 108th Congress <http://thomas.loc.gov/cgi-bin/bdquery/ z?d108: HR04520:@@@X>. This proposed legislation reflects the ability of Congress to address any perceived unfairness in particular types of litigation. Respondents, by contrast, ask the courts to alter the tax treatment of all contingent-fee awards without any basis in statutory text.
In addition, Banks states (Br. 18) that the statutory causes of action on which his lawsuit was based contained "fee-shifting" provisions, under which the court allegedly could have awarded attorney's fees separate from and in addition to damages compensating the plaintiff for injuries and losses suffered. Banaitis contends (Br. 42, 45) that the government is "apparently attempting" to tax attorney's fees paid under fee-shifting statutes. The fees here, however, were paid under contingent-fee agreements, not under fee-shifting statutes. There was no award of statutory attorney's fees, and the attorney's fees paid to respondents' counsel were a percentage of the settlement proceeds, as provided in the fee agreements, not a "reasonable" fee calculated under the "lodestar" approach applicable under fee-shifting statutes. See, e.g., Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). The question whether attorney's fees awarded under fee-shifting statutes are excludable from the plaintiff's gross income is therefore not presented here, and the Court need not decide that issue to resolve these cases. Moreover, the legislation currently pending before Congress is narrowly focused on certain civil rights cases, which are also the cases in which most fee-shifting occurs, and so, if enacted, would largely resolve that issue, while leaving intact the general principle that all litigation proceeds, including those paid to an attorney, are includable in the litigant's gross income.
In any event, respondents' concerns are exaggerated, because they ignore important distinctions between statutory fee awards and contingent fees. To be sure, in the absence of an assignment, it is the prevailing plaintiff, and not the attorney, that owns the claim for fees under a fee-shifting statute. See, e.g., Evans v. Jeff D., 475 U.S. 717, 730-732 (1986). That the prevailing plaintiff owns and controls the claim for fees would support treating an award of attorney's fees under a fee-shifting statute as gross income to the plaintiff in some instances-for example, where the plaintiff retains all or part of the award and is not contractually obligated to transfer the award to his attorney, see Blanchard v. Bergeron, 489 U.S. 87, 95 (1989), or where the fees are paid directly to the attorney in satisfaction of a debt owed by the prevailing party, see Sinyard v. Commissioner, 268 F.3d 756, 759-760 (9th Cir. 2001), cert. denied, 536 U.S. 904 (2002). This Court indicated in Jeff D., however, that a prevailing plaintiff may be free to assign his statutory claim for attorney's fees to his attorney, see 475 U.S. at 730-731 (noting Congress "did not prevent the party from waiving this eligibility [for attorney's fees] anymore than it legislated against assignment of this right to an attorney"), and such assignments are not uncommon. Once such an assignment has occurred, courts generally permit the lawyer to sue on his own behalf to recover his fees, without the participation or consent of the prevailing party, see, e.g., Carpa, Inc. v. Ward Foods, Inc., 536 F.2d 39, 52 (5th Cir. 1976); Goodman v. Heublein, Inc., 682 F.2d 44, 47-48 (2d Cir. 1982). If such an assignment is viewed as a transfer of the entirety of the attorney's fee claim to the lawyer, such that the prevailing party retains no meaningful interest in or control over the claim, then it may be possible to view any recovery on that claim as income only to the lawyer.
* * * * *
For the foregoing reasons, and for the reasons stated in our opening brief, the judgments of the courts of appeals should be reversed with respect to the issue of the tax treatment of contingent attorney's fees.
Respectfully submitted.
Acting Solicitor General
1 Respondent Banaitis goes so far as to argue-for the first time- that "[t]his case is governed by Subchapter K of the Internal Revenue Code," (Br. 1), which governs taxation of partnership profits. Banaitis never raised that argument below or in his brief in opposition, and it is therefore waived. Indeed, neither Banaitis in his lower court briefs nor the Ninth Circuit in its opinion ever cited to a single provision of Subchapter K. His sole argument, adopted by the court of appeals, was that Oregon's attorney lien statute "vests attorneys with property interests" that justify treating the contingent-fee portion of litigation proceeds as belonging to the attorney for tax purposes. Banaitis Pet. App. 16a; see Banaitis Br. in Opp. 7 ("[T]his is essentially a state law case.").
2 Respondent Banks's claim (Br. 17) that "[b]y entering into the contingent fee contract with his attorney, [he] ceded * * * all control over the portion attributable to the contingent fee earned and retained by his attorney" is particularly misplaced. Following the settlement, Banks refused to endorse the settlement check made out to him and his attorney until after his attorney agreed to receive $35,000 less than he was entitled to receive under the contingent-fee agreement. See J.A. 30-31, 36-37. Banks obviously did not relinquish all control over that income when he executed the agreement.
3 Nor is it true that the government's interpretation of Section 61 rests exclusively on the assignment-of-income doctrine. As demonstrated in Part B, infra, and in our opening brief (Br. 19, 30), the contingent-fee agreements at issue here gave rise to contingent debts running from respondents to their attorneys, and under the principle established in Old Colony Trust, supra, the direct payment by third parties to respondents' attorneys of the debts owed by respondents was income to respondents in the amount of the discharged debts, without regard to the applicability of the assignment-of-income doctrine.
4 Ironically, respondents' proposed construction of the statute would entail significant and unjustified tax advantages for contingent-fee arrangements over hourly- or flat-fee arrangements and would thereby create incentives for tax-motivated arrangements like those respondents contend gave rise to the assignment-of-income doctrine.