Coltec Industries, Inc. v. U.S.

Case Updates

NCLC urged the Supreme Court to consider the appropriate standard of review in economic substance doctrine cases. In its brief, NCLC argued the court below gave no deference to the defendant’s legitimate business judgment and instead adopted an “objective” test which required the court to make its own independent judgment. Naturally, courts do not have the capacity to make such judgments. In addition, NCLC argued that courts of appeals should defer to district court factual findings on the presence or absence of economic substance.