Pittsburgh, Cincinnati, Chicago & St. Louis Railway Co. v. Backus Case Brief
Complete case briefs with LSD+
Every LSD.Law brief pairs a full IRAC analysis with opinion summaries at three levels of depth, written by a team of Harvard Law and MIT graduates - a quick synopsis when you are pressed for time, the complete reasoning when you need to go deep.
Adaptive Case Views
Toggle between Flash, Standard, and Expanded. Get what you need, when you need it.
Exam-Ready IRAC Format
We deliver the precise structure professors look for in exam answers.
Complex Cases, Clarified
We break down dense legal reasoning into something digestible, helping you grasp core concepts.
Case Brief Summary & Legal Analysis
tl;dr: An interstate railroad challenged Indiana’s tax assessment, which valued its in-state property based on the value of the entire enterprise. The Supreme Court upheld the state’s valuation method as a constitutional means of taxing the in-state portion of a unitary business.
Legal Significance: This case established the constitutional validity of the “unit rule” for state taxation, allowing states to value an interstate company’s in-state property by apportioning the value of the entire business enterprise, including intangible elements reflected in stock and bond values.
Pittsburgh, Cincinnati, Chicago & St. Louis Railway Co. v. Backus Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
The Pittsburgh, Cincinnati, Chicago & St. Louis Railway Co., an interstate railroad, challenged a tax assessment by Indiana’s State Board of Tax Commissioners. The Board, acting under an 1891 state law, valued the company’s “railroad track” and “rolling stock” within Indiana at over $22 million, a significant increase from the prior year’s $8.5 million valuation. The statute required the Board to consider various factors, including the company’s total capital stock and indebtedness, to determine the “true cash value” of the property. The railroad argued this method was unconstitutional because it effectively taxed property located outside of Indiana, violating the Due Process Clause of the Fourteenth Amendment and the Commerce Clause. The company contended that its property’s value was disproportionately concentrated in out-of-state assets, such as major urban terminals, making a valuation based on the entire system’s worth and apportioned by mileage inherently unfair and inaccurate. The railroad also raised procedural due process and equal protection claims regarding the hearing process.
Court Holding & Legal Precedent
Issue: May a state, for property tax purposes, constitutionally determine the value of an interstate railroad’s in-state assets by treating the railroad as a unitary enterprise and considering the market value of its total capital stock and indebtedness as a basis for apportionment?
Yes. The Court affirmed the judgment of the Supreme Court of Indiana, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in
IRAC Legal Analysis
About IRAC analysis
IRAC (Issue, Rule, Analysis, Conclusion) is the structure professors expect in exam answers. Each LSD.Law brief states the issue, the governing rule with citations, the court's application of that rule, and the conclusion - the same reasoning pattern you will use on exams and in practice.
Legal Issue
May a state, for property tax purposes, constitutionally determine the value of an interstate railroad’s in-state assets by treating the railroad as a unitary enterprise and considering the market value of its total capital stock and indebtedness as a basis for apportionment?
Conclusion
This decision strongly affirmed the unit rule, providing states with a constitutional Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim v
Legal Rule
A state may assess the value of the in-state portion of an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum
Legal Analysis
The Court's analysis centered on the validity of the "unit rule" of Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id e
Flash-to-Full Case Opinions
Flash Summary
- Procedural Due Process: In tax cases, a statute setting the time