J. Howard Marshall
Encyclopedia
James Howard Marshall II (January 24, 1905 – August 4, 1995) was an American business magnate
, university professor, attorney
, and federal government official. His life spanned more than nine decades and almost the entire history of the oil industry, from the early years when uncontrolled production depleted valuable fields and natural gas was burned at the well head, to the decades of energy shortages and the Arab Oil Embargo. Marshall was married to Anna Nicole Smith
during the last 14 months of his life. His estate became the subject of protracted litigation which remains ongoing, part of which was reviewed by the Supreme Court in Marshall v. Marshall
.
, J. Howard Marshall II attended George School
, a private high school in Newtown, Pennsylvania
, and then studied liberal arts at Haverford College
, both Quaker institutions, graduating in 1926. While at George School and Haverford he edited the school newspapers, captained the debate teams and was an All American soccer player and played competitive tennis under the instruction of professional Bill Tilden
. He graduated Magna Cum Laude from Yale Law School
in 1931. At Yale, he was case editor of the Yale Law Journal and studied with the law and economics
pioneer Walton Hale Hamilton
.
at Yale Law School
and his teaching schedule during these years has been definitively documented. At the same time, he was producing scholarship as a member of the influential legal realist
school of thought, working with future Supreme Court
Justice William O. Douglas
on an article entitled A Factual Study of Bankruptcy Administration and Some Suggestions. However, his most influential works, done with Norman Meyers, were two articles entitled Legal Planning of Petroleum Production. These pioneering studies offered an alternative to the then-current practices of controlled production among the oil industry, which were leading to dramatic boom/bust cycles, and gained the interest of the government, especially since the legal minds behind the New Deal
were staunch legal realists
.
In 1933, he left Yale to become the Assistant Solicitor at the Department of Interior under Harold L. Ickes
. During his first tour at Interior, he authored the Connally Hot Oil Act of 1935
in the wake of the Supreme Court's decision to strike down the National Industrial Recovery Act
(NIRA). Specifically, it revived the portion of the original legislation that regulated the flow of oil between states. Ostensibly enacted to protect the industry from "contraband oil" in order to stabilize falling prices.
In 1935, he left government service to become the special counsel
to the president (Ken Kingsbury) of Standard Oil
of California (now Chevron
) in San Francisco, and began his long career as an oilman. Another two years later he became a partner at the firm Pillsbury Madison Sutro (now known as Pillsbury Winthrop Shaw Pittman
), which was the company's outside counsel. It was at Standard of California that he began a life long business association and friendship with his mentor Ralph Davies. In 1942, he was called back to Washington, D.C. during the war
as Solicitor of the Petroleum Administration for War, helping develop America
's energy policy
during the war, and later as a member of the Committee on Reparations. In 1944, after developing a relationship with Paul Blazier, he became President of Ashland Oil and Refining Co. (now Marathon Oil
). Later positions included Executive Vice President at Signal Oil & Gas under Sam Mosher, President of Union Texas Petroleum and Executive Vice President of Allied Signal (all now Honeywell
, Union Texas Petroleum Holdings was later sold to ARCO
and merged into BP
),until his semi-retirement in 1969.
Marshall remained active in the energy industry through many personal endeavors with Great Northern Oil Company, Koch Industries
, Coastal Corp (now El Paso Corporation), Independent Refinery, International Oil and Gas, various exploration syndicates and culminating in 1984, when he founded Marshall Petroleum. Throughout many of his endeavors, Marshall turned most of his business associations into friendships; including J.R. Parten, Fred Koch and his sons, Oscar Wyatt
and E.O. Buck.
, now the nation's second largest privately held company. When his eldest son J. Howard Marshall III
sided with Bill Koch, Fredrick Koch and other collateral family members in a failed attempt to take over Koch Industries from Charles Koch and David Koch
, he purchased back company stock given previously as a gift and removed the eldest son from his estate plan. Conversely, during the same dispute, the late E. Pierce Marshall
sided with his father, Charles Koch and David Koch.
. Their marriage lasted fourteen months until his death.
(who died on June 20, 2006). J. Howard's will and trust did not include Anna Nicole or J. Howard's other son, J. Howard Marshall III
. The legal dispute worked its way through both state and federal courts as Anna Nicole and J. Howard III sought to overturn the will and trust. In 2001, they both lost their cases during a six-month Texas state court jury trial, upholding Marshall's will and trust.
During the probate proceedings, Smith declared bankruptcy in California and was awarded $474 million as a sanction for alleged misconduct. In 2002, the bankruptcy judgment was vacated and her award was reduced to $88 million in a Federal District Court
in California. In December 2004, a three-judge panel of the 9th Circuit Court of Appeals
vacated the District Court decision under the probate exception, ruling that the federal courts lacked jurisdiction over state probate matters. The 9th Circuit decision also affirmed the primacy of Texas Probate decision which determined that no misconduct had taken place and that Smith was not one of J. Howard Marshall's heirs. However, on May 1, 2006, the Supreme Court
in Marshall v. Marshall
reversed the ninth circuit's decision regarding the probate exception, allowing Smith another opportunity to pursue her claims in federal court. The case was remanded to the 9th Circuit for adjudication of the remaining appellate issues. On June 25, 2009 the same three-judge panel of the 9th Circuit Court of Appeals
heard oral arguments on the remaining appellate issues in the case and submitted the case for consideration and final adjudication. On March 19, 2010 the 9th Circuit Court of Appeals
issued its opinion on remand, finding in favor of E. Pierce Marshall, that the California Bankruptcy Court did not have jurisdiction and the California Federal District Court was precluded from reviewing matters already decided in the Texas Probate Court.
On September 28, 2010, the U.S. Supreme Court again agreed to hear the case.On June 23, 2011, the United States Supreme court decided the case in a 5-4 decision (now styled Stern v. Marshall 10-179). The majority of the Court decided Congress cannot constitutionally authorize non-Article III bankruptcy judges final order jurisdiction on state law based counterclaims to proofs of claim which are not necessary to resolve the claim itself.
Marshall's eldest son not only lost his case in Texas probate court but also lost a counterclaim against him for fraud with malice. The jury originally awarded Pierce Marshall $35 million in damages but the probate court reduced that amount to $10 million. J. Howard Marshall III
then filed for bankrutpcy in California and sought relief in front of the very same bankrutpcy judge that had administered Smith's bankruptcy. This case is currently pending before the 9th Circuit Court of Appeals.
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
, university professor, attorney
Attorney
Attorney may refer to:*Attorney at law, a lawyer in some countries*Attorney general, the principal legal adviser to a government*Attorney-in-fact, a person authorised to act on someone else's behalf in a legal or business matter by a power of attorney...
, and federal government official. His life spanned more than nine decades and almost the entire history of the oil industry, from the early years when uncontrolled production depleted valuable fields and natural gas was burned at the well head, to the decades of energy shortages and the Arab Oil Embargo. Marshall was married to Anna Nicole Smith
Anna Nicole Smith
In 1992 Smith was chosen by Hugh Hefner to appear on the cover of the March issue of Playboy, where she was listed as Vickie Smith, wearing a low-cut evening gown. The centerfold was photographed by Stephen Wayda. Smith said she planned to be "the next Marilyn Monroe". Becoming one of Playboys...
during the last 14 months of his life. His estate became the subject of protracted litigation which remains ongoing, part of which was reviewed by the Supreme Court in Marshall v. Marshall
Marshall v. Marshall
Marshall v. Marshall, 547 U.S. 293 , is a case in which the United States Supreme Court held that a federal district court had equal or concurrent jurisdiction with state probate courts over tort claims under state common law...
.
Early years
Born in Germantown, PennsylvaniaGermantown, Philadelphia, Pennsylvania
Germantown is a neighborhood in the northwest section of the city of Philadelphia, Pennsylvania, United States, about 7–8 miles northwest from the center of the city...
, J. Howard Marshall II attended George School
George School
George School is a private Quaker boarding and day high school located on a rural campus near Newtown, Pennsylvania, USA. It was founded at its present site in 1893, and has grown from a single building to over 20 academic, athletic, and residential buildings...
, a private high school in Newtown, Pennsylvania
Newtown, Bucks County, Pennsylvania
Newtown is a borough in Bucks County, Pennsylvania, United States. The population was 2,248 at the 2010 census. It is located just west of the Trenton, New Jersey metropolitan area, and is part of the larger Philadelphia metropolitan area. It is entirely surrounded by Newtown Township, from which...
, and then studied liberal arts at Haverford College
Haverford College
Haverford College is a private, coeducational liberal arts college located in Haverford, Pennsylvania, United States, a suburb of Philadelphia...
, both Quaker institutions, graduating in 1926. While at George School and Haverford he edited the school newspapers, captained the debate teams and was an All American soccer player and played competitive tennis under the instruction of professional Bill Tilden
Bill Tilden
William Tatem Tilden II , nicknamed "Big Bill," is often considered one of the greatest tennis players of all time. An American tennis player who was the World No. 1 player for seven years, he won 14 Majors including ten Grand Slams and four Pro Slams. Bill Tilden dominated the world of...
. He graduated Magna Cum Laude from Yale Law School
Yale Law School
Yale Law School, or YLS, is the law school of Yale University in New Haven, Connecticut, United States. Established in 1824, it offers the J.D., LL.M., J.S.D. and M.S.L. degrees in law. It also hosts visiting scholars, visiting researchers and a number of legal research centers...
in 1931. At Yale, he was case editor of the Yale Law Journal and studied with the law and economics
Law and economics
The economic analysis of law is an analysis of law applying methods of economics. Economic concepts are used to explain the effects of laws, to assess which legal rules are economically efficient, and to predict which legal rules will be promulgated.-Relationship to other disciplines and...
pioneer Walton Hale Hamilton
Walton Hale Hamilton
Walton Hale Hamilton was an American law professor who taught at the Yale Law School , although he was an economist, not a lawyer. Considered a leading figure in the Legal Realism movement at Yale, Hamilton was a vigorous critic of legal formalism and sought to apply the insights of economic...
.
Careers
Upon graduation he served from 1931 to 1933 as an Assistant DeanDean (education)
In academic administration, a dean is a person with significant authority over a specific academic unit, or over a specific area of concern, or both...
at Yale Law School
Yale Law School
Yale Law School, or YLS, is the law school of Yale University in New Haven, Connecticut, United States. Established in 1824, it offers the J.D., LL.M., J.S.D. and M.S.L. degrees in law. It also hosts visiting scholars, visiting researchers and a number of legal research centers...
and his teaching schedule during these years has been definitively documented. At the same time, he was producing scholarship as a member of the influential legal realist
Legal realism
Legal realism is a school of legal philosophy that is generally associated with the culmination of the early-twentieth century attack on the orthodox claims of late-nineteenth-century classical legal thought in the United States...
school of thought, working with future Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
Justice William O. Douglas
William O. Douglas
William Orville Douglas was an Associate Justice of the United States Supreme Court. With a term lasting 36 years and 209 days, he is the longest-serving justice in the history of the Supreme Court...
on an article entitled A Factual Study of Bankruptcy Administration and Some Suggestions. However, his most influential works, done with Norman Meyers, were two articles entitled Legal Planning of Petroleum Production. These pioneering studies offered an alternative to the then-current practices of controlled production among the oil industry, which were leading to dramatic boom/bust cycles, and gained the interest of the government, especially since the legal minds behind the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
were staunch legal realists
Legal realism
Legal realism is a school of legal philosophy that is generally associated with the culmination of the early-twentieth century attack on the orthodox claims of late-nineteenth-century classical legal thought in the United States...
.
In 1933, he left Yale to become the Assistant Solicitor at the Department of Interior under Harold L. Ickes
Harold L. Ickes
Harold LeClair Ickes was a United States administrator and politician. He served as United States Secretary of the Interior for 13 years, from 1933 to 1946, the longest tenure of anyone to hold the office, and the second longest serving Cabinet member in U.S. history next to James Wilson. Ickes...
. During his first tour at Interior, he authored the Connally Hot Oil Act of 1935
Connally Hot Oil Act of 1935
The Connally Hot Oil Act of 1935 was enacted in the wake of the Supreme Court's decision to strike down Section 9 of the National Industrial Recovery Act in Panama Refining Co. v. Ryan, which gave the President authority "to prohibit the transportation in interstate and foreign commerce of...
in the wake of the Supreme Court's decision to strike down the National Industrial Recovery Act
National Industrial Recovery Act
The National Industrial Recovery Act , officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 (Ch. 90, 48 Stat. 195, formerly...
(NIRA). Specifically, it revived the portion of the original legislation that regulated the flow of oil between states. Ostensibly enacted to protect the industry from "contraband oil" in order to stabilize falling prices.
In 1935, he left government service to become the special counsel
Counsel
A counsel or a counselor gives advice, more particularly in legal matters.-U.K. and Ireland:The legal system in England uses the term counsel as an approximate synonym for a barrister-at-law, and may apply it to mean either a single person who pleads a cause, or collectively, the body of barristers...
to the president (Ken Kingsbury) of Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
of California (now Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
) in San Francisco, and began his long career as an oilman. Another two years later he became a partner at the firm Pillsbury Madison Sutro (now known as Pillsbury Winthrop Shaw Pittman
Pillsbury Winthrop Shaw Pittman
Pillsbury Winthrop Shaw Pittman LLP is an international, full-service law firm with strengths in the energy, financial services, real estate and technology sectors and offices located throughout the United States and the world, including key financial centers such as New York, London, Tokyo and...
), which was the company's outside counsel. It was at Standard of California that he began a life long business association and friendship with his mentor Ralph Davies. In 1942, he was called back to Washington, D.C. during the war
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
as Solicitor of the Petroleum Administration for War, helping develop America
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
's energy policy
Energy policy
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy production, distribution and consumption...
during the war, and later as a member of the Committee on Reparations. In 1944, after developing a relationship with Paul Blazier, he became President of Ashland Oil and Refining Co. (now Marathon Oil
Marathon Oil
Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway,...
). Later positions included Executive Vice President at Signal Oil & Gas under Sam Mosher, President of Union Texas Petroleum and Executive Vice President of Allied Signal (all now Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
, Union Texas Petroleum Holdings was later sold to ARCO
ARCO
Atlantic Richfield Company is an oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States. ARCO was originally formed by the merger of East Coast-based Atlantic...
and merged into BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
),until his semi-retirement in 1969.
Marshall remained active in the energy industry through many personal endeavors with Great Northern Oil Company, Koch Industries
Koch Industries
Koch Industries, Inc. , is an American private energy conglomerate based in Wichita, Kansas, with subsidiaries involved in manufacturing, trading and investments. Koch also owns Invista, Georgia-Pacific, Flint Hills Resources, Koch Pipeline, Koch Fertilizer, Koch Minerals and Matador Cattle Company...
, Coastal Corp (now El Paso Corporation), Independent Refinery, International Oil and Gas, various exploration syndicates and culminating in 1984, when he founded Marshall Petroleum. Throughout many of his endeavors, Marshall turned most of his business associations into friendships; including J.R. Parten, Fred Koch and his sons, Oscar Wyatt
Oscar Wyatt
Oscar Sherman Wyatt, Jr. is an American businessman. He was the founder of Coastal Corporation. In 2007 he pled guilty in a U.S. federal court to illegally sending payments to Iraq under the Oil for Food program.-Early history:...
and E.O. Buck.
Koch Industries
Marshall turned his investment in Great Northern Oil Co. with Fred Koch during the 1950s into a 16% stake in Koch IndustriesKoch Industries
Koch Industries, Inc. , is an American private energy conglomerate based in Wichita, Kansas, with subsidiaries involved in manufacturing, trading and investments. Koch also owns Invista, Georgia-Pacific, Flint Hills Resources, Koch Pipeline, Koch Fertilizer, Koch Minerals and Matador Cattle Company...
, now the nation's second largest privately held company. When his eldest son J. Howard Marshall III
J. Howard Marshall III
James Howard Marshall III is an American businessman.- Biography :He was disinherited by his father, J. Howard Marshall II, after siding with William Koch in Koch's attempt to take over Koch Industries, Inc. from his brother, Charles Koch; Marshall II, who was a board member of the company, and...
sided with Bill Koch, Fredrick Koch and other collateral family members in a failed attempt to take over Koch Industries from Charles Koch and David Koch
David H. Koch
David Hamilton Koch is an American businessman, philanthropist, political activist, and chemical engineer. He is a co-owner and an executive vice president of Koch Industries, a conglomerate that is the second-largest privately held company in the U.S...
, he purchased back company stock given previously as a gift and removed the eldest son from his estate plan. Conversely, during the same dispute, the late E. Pierce Marshall
E. Pierce Marshall
Everett Pierce Marshall was an American businessman and a son of J. Howard Marshall II.According to a Dallas Morning News article, he was a very private man, but became known due to defending the long-running legal dispute from his father's third wife, Anna Nicole Smith.Marshall attended...
sided with his father, Charles Koch and David Koch.
Marriages
He married Eleanor Pierce in 1931 and divorced in 1961. His second marriage, to Bettye Bohannon, lasted from 1961 until her death in 1991. In 1994, at the age of 89, he married 26-year-old model Anna Nicole SmithAnna Nicole Smith
In 1992 Smith was chosen by Hugh Hefner to appear on the cover of the March issue of Playboy, where she was listed as Vickie Smith, wearing a low-cut evening gown. The centerfold was photographed by Stephen Wayda. Smith said she planned to be "the next Marilyn Monroe". Becoming one of Playboys...
. Their marriage lasted fourteen months until his death.
Death and ensuing lawsuits
Marshall died of natural causes at the age of 90 in Houston, Texas on August 4, 1995. Following Marshall's death, Anna Nicole Smith (who died on February 8, 2007) became involved in a court battle with her former stepson, E. Pierce MarshallE. Pierce Marshall
Everett Pierce Marshall was an American businessman and a son of J. Howard Marshall II.According to a Dallas Morning News article, he was a very private man, but became known due to defending the long-running legal dispute from his father's third wife, Anna Nicole Smith.Marshall attended...
(who died on June 20, 2006). J. Howard's will and trust did not include Anna Nicole or J. Howard's other son, J. Howard Marshall III
J. Howard Marshall III
James Howard Marshall III is an American businessman.- Biography :He was disinherited by his father, J. Howard Marshall II, after siding with William Koch in Koch's attempt to take over Koch Industries, Inc. from his brother, Charles Koch; Marshall II, who was a board member of the company, and...
. The legal dispute worked its way through both state and federal courts as Anna Nicole and J. Howard III sought to overturn the will and trust. In 2001, they both lost their cases during a six-month Texas state court jury trial, upholding Marshall's will and trust.
During the probate proceedings, Smith declared bankruptcy in California and was awarded $474 million as a sanction for alleged misconduct. In 2002, the bankruptcy judgment was vacated and her award was reduced to $88 million in a Federal District Court
United States federal courts
The United States federal courts make up the judiciary branch of federal government of the United States organized under the United States Constitution and laws of the federal government.-Categories:...
in California. In December 2004, a three-judge panel of the 9th Circuit Court of Appeals
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...
vacated the District Court decision under the probate exception, ruling that the federal courts lacked jurisdiction over state probate matters. The 9th Circuit decision also affirmed the primacy of Texas Probate decision which determined that no misconduct had taken place and that Smith was not one of J. Howard Marshall's heirs. However, on May 1, 2006, the Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
in Marshall v. Marshall
Marshall v. Marshall
Marshall v. Marshall, 547 U.S. 293 , is a case in which the United States Supreme Court held that a federal district court had equal or concurrent jurisdiction with state probate courts over tort claims under state common law...
reversed the ninth circuit's decision regarding the probate exception, allowing Smith another opportunity to pursue her claims in federal court. The case was remanded to the 9th Circuit for adjudication of the remaining appellate issues. On June 25, 2009 the same three-judge panel of the 9th Circuit Court of Appeals
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...
heard oral arguments on the remaining appellate issues in the case and submitted the case for consideration and final adjudication. On March 19, 2010 the 9th Circuit Court of Appeals
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...
issued its opinion on remand, finding in favor of E. Pierce Marshall, that the California Bankruptcy Court did not have jurisdiction and the California Federal District Court was precluded from reviewing matters already decided in the Texas Probate Court.
On September 28, 2010, the U.S. Supreme Court again agreed to hear the case.On June 23, 2011, the United States Supreme court decided the case in a 5-4 decision (now styled Stern v. Marshall 10-179). The majority of the Court decided Congress cannot constitutionally authorize non-Article III bankruptcy judges final order jurisdiction on state law based counterclaims to proofs of claim which are not necessary to resolve the claim itself.
Marshall's eldest son not only lost his case in Texas probate court but also lost a counterclaim against him for fraud with malice. The jury originally awarded Pierce Marshall $35 million in damages but the probate court reduced that amount to $10 million. J. Howard Marshall III
J. Howard Marshall III
James Howard Marshall III is an American businessman.- Biography :He was disinherited by his father, J. Howard Marshall II, after siding with William Koch in Koch's attempt to take over Koch Industries, Inc. from his brother, Charles Koch; Marshall II, who was a board member of the company, and...
then filed for bankrutpcy in California and sought relief in front of the very same bankrutpcy judge that had administered Smith's bankruptcy. This case is currently pending before the 9th Circuit Court of Appeals.
External links
- Ironton Tribune article
- American Spectator article
- E&P Magazine article
- Houston Chronicle article
- U.S. News and World Report article
- Ashland Oil history
- Profile of J. Howard Marshall, II
- Wall Street Journal article
- Connally Hot Oil Act of 1935 from Handbook of Texas online
- Again, Hot Oil from Time Magazine, 1938