Arthur Earl McKnight v. United States

This is a civil suit brought by the government against a World War II veteran to recover a sum of money on a Loan Guarantee the veteran-defendant had executed in connection with a loan ■obtained from the Porterville Mutual Building & Loan Association, with which the defendant purchased a home. The method of computing the amount claimed, $1,453.64, plus interest, is set forth in the margin. The district court’s jurisdiction was based on 28 U.S. C. § 1345, and this appeal on 28 U.S.C. § 1291 .

Appellant insists that in reality there was no “loss” to the government,

Appellant offered to prove below that because the Veterans Administrator acquired the property from the Building & Loan Association for a total price of $7,047.50 and sold it for a net of $6,631.-88, it had suffered a loss of $415.62 only. This offer was refused and, error is claimed in that refusal.

The amount mentioned, $415.62, argues appellant, is the true amount of the government’s loss, and the government should not be allowed to profit under an act designed to give relief “to members of the Armed Forces of limited means who honorably served their country during World War II.” Appellant further urges that the…