United States v. The United States National Bank of Portland (Oregon), of the Estate of Sam J. Wilson, Deceased, and Jessie Wilson

Taxpayers, the Executor of the Estate of Sam J. Wilson, deceased, and his widow, presented a claim for refund of income taxes paid. The claim being rejected, timely suit was filed by them in the District Court to recover the taxes paid. From a judgment in their favor, this appeal was taken by the United States.

In 1943 an oral agreement was entered into between Wilson and one Samuel A. Agnew, under which Wilson was to procure various timberlands which could be resold for profit. Pursuant thereto Wilson arranged for the purchase of various properties with money supplied by Agnew. Title to such lands was taken in Agnew’s name. In 1946 difficulties arose between the two men which resulted in three suits begun in the Su perior Court of Del Norte County, California, in one of which Wilson was plaintiff. The amended complaint therein alleged that:

The agreement between the parties was a joint venture under the terms of which the timberlands purchased were to be resold and the profits from land purchased at tax sales were to be divided 50% to Wilson and Wilson was to receive 20% of the profits derived from sales of lands acquired from private owners.

Agnew had breached the agreement…