Securities - Tax Shelter Schemes and Damages in the Eighth Circuit - Hayden v. McDonald
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Authors
Sharp, Jeffrey D.
Issue Date
1985
Volume
18
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|Although the increasing use of tax sheltered investments has proven beneficial to many individuals, such investments carry with them the possibility that the investor may be forced to resort to litigation to recover monies lost through the fault of the promoter. One issue which has arisen from such investor litigation is whether a plaintiff/investor's recovery must be "offset" by the amount of tax benefits recovered by the investor. Courts addressing this question have split on the issue.|In Hayden v. McDonald, the Eighth Circuit Court of Appeals readdressed its earlier decision in Austin v. Loftsgaardens where the court held that evidence of tax benefits received must be considered in determining a plaintiff/investor's damages. The Eighth Circuit in Hayden reaffirmed the Austin decision and stated further that both past tax benefits and future tax consequences are relevant in determining a plaintiff's actual damages in tax shelter litigation. It is the purpose of this Note to evaluate the Austin and Hayden decisions and to discuss ramifications these cases may have on the status of the award of damages in tax shelter cases in the Eighth Circuit...
Description
Citation
18 Creighton L. Rev. 1307 (1984-1985)
Publisher
Creighton University School of Law