The Graham Family Estate Secures Dismissal of Appeals Following Tax Dispute Victories

On October 20, 2022, the District of Columbia Court of Appeals dismissed the last of five appeals that were filed following favorable decisions issued in a series of cases Cravath handled on behalf of trusts established by the late Katharine M. Graham, who served as publisher of The Washington Post between 1963 and 1991 and who, prior to her death, worked with Cravath to establish the trusts at issue.

In March, 2020, Cravath filed five separate but related petitions in the Superior Court of the District of Columbia, Tax Division, challenging the constitutionality of a D.C. statute that imposed a fiduciary income tax on the trusts in 2012, 2013 and 2014. The trusts were created in New York, under New York law, and were administered in New York at all times. The District of Columbia purported to tax the trusts, despite the fact that none of the assets, beneficiaries or trustees were located in or resided in the District of Columbia during the relevant tax period.

The Tax Division of the Superior Court of the District of Columbia ruled in favor of the Graham family trusts in all five lawsuits, which were consolidated into two separate proceedings, and the decisions were ultimately appealed to the District of Columbia Court of Appeals, which dismissed the final appeal on October 20, 2022.

The Cravath team was led by partner David R. Marriott and includes partner Alexandra C. Denning, senior attorney Scott J. Ferretti and associate Margaret E. Anderson.

The cases are District of Columbia v. Alice M. Graham Trust, Daniel L. Mosley Trustee, et al., 2020 CVT 11, 2020 CVT 12 and CVT 13 (D.C.); District of Columbia v. Edward L. Graham Trust U/A/D 11/29/89, Daniel L. Mosley Trustee, 2020 CVT 549 (D.C.); and District of Columbia v. William W. Graham Trust U/A/D 6/25/69, Daniel L. Mosley Trustee, 2020 CVT 550 (D.C.).