October Term 2002 · Docket 01-1325
Does a state tax on interest from client trust accounts violate the Fifth Amendment?
the sides that brought the case claim a state tax on interest from client trust accounts is an unconstitutional taking. the opposing sides argue the tax is a valid exercise of state power.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Fried argued the interest in IOLTA accounts is private property.
Mr. Fried argued the state took the property without just compensation.
Mr. Burman argued the plaintiffs' case has a fundamental flaw.
Mr. Dellinger argued a taking requires property, a taking, and denial of compensation.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 3, lines 5-17 — Transcript, file page 3, lines 5-17
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
A citizen's guide to the whole case
What this case is about
This case tests whether a state tax on interest from client trust accounts is a constitutional taking. the sides that brought the case argue the tax takes private property without just compensation. the opposing sides argue the tax is a valid exercise of state power.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
How the case got here
The Supreme Court heard oral argument in this case on December 9, 2002.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 5-17 — Transcript, file page 3, lines 5-17
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
What each side wants
the sides that brought the case want the Court to strike down the state tax on interest from client trust accounts.
the opposing sides want the Court to uphold the state tax on interest from client trust accounts.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
What each side says
the sides that brought the case argue the tax takes private property without just compensation.
the opposing sides argue the tax is a valid exercise of state power.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
What the justices asked
Justice O'Connor asked about the flaw in the plaintiffs' case.
Justice Stevens asked the advocates to proceed with their arguments.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 3, lines 5-17 — Transcript, file page 3, lines 5-17
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
Why it matters
The outcome determines whether states can tax interest from client trust accounts. This affects how states manage public funds and how clients receive compensation.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 3, lines 5-17 — Transcript, file page 3, lines 5-17
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
- Official Supreme Court Transcript — file page 22, lines 49-23 — Transcript, file page 22, lines 49-23
- Official Supreme Court Transcript — file page 3, lines 19-47 — Transcript, file page 3, lines 19-47
- Official Supreme Court Transcript — file page 37, lines 29-11 — Transcript, file page 37, lines 29-11
- Official Supreme Court Transcript — file page 51, lines 23-41 — Transcript, file page 51, lines 23-41
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.