Death of a Defendant in a Unilateral Contracts Case

As reported in The New York Times here, Irwin Schiff, a famous opponent of federal taxation, passed away in prison at the age of 87.  He had been sentenced in 2005 for tax evasion.  He claimed that he was being truthful when he reported that he had “no income in the constitutional sense.”

His life is of interest to contracts profs because of Newman v. Schiff.  In 1983, Schiff offered $100,000 to anyone who could cite a section from the Internal Revenue Code (Code) that required an individual to file a federal tax return.  Schiff issued this challenge on a CBS new show called “Nightwatch.”  Mr. Newman heard the challenge on a rebroadcast of the show and responded the next day when he had a chance to look through the Code and identify the relevant sections.  Schiff refused to pay, informing Newman that his response was both procedurally and substantively flaws.  Newman sued.

The District Court agreed with Schiff that Newman response was procedurally flawed.  It construed the offer to be open only until the end of the Nightwatch broadcast.  Mr. Newman was late.  But he was not wrong.  The District Court characterized Schiff’s position on taxes as “blatant nonsense.”  As the Times obituary notes, his son writes on economic topics.  The son found his father’s positions compelling but impractical.   Schiff remained committed to his beliefs right up to the end. 

Hat tip to Gonzaga Law’s Scott Burnham.