Brinker-Johnson Company and Walter W. Johnson v. Wendell B. Barnes, Administrator, Small Business Administration

We had this case previously and a majority of the court concluded that it was a matter for the consideration of the Court of Claims and therefore ordered it dismissed. A petition for rehearing was filed. We ordered that action on the petition be held in abeyance until the Court of Claims acted. That order had the effect of causing the action to still pend before this Court. The Court of Claims recognizing this very properly under the applicable law dismissed the petition before it.

After the dismissal by the Court of Claims we granted the petition for rehearing. The case has been reargued and submitted on the merits.

Appellants are seeking recovery of certain interest payments to the Reeon-struction Finance Company, hereafter R.F.C., on a loan made to it by R.F.C. The Small Business Administration has been substituted as party defendant as the successor to the R.F.C.

Brinker-Johnson Co. was organized for the purpose of operating certain mining claims in Alaska containing ore carrying gold values. The company was unable to finance the operation without financial assistance and made application to R.F.C. to secure the needed funds. In 1941 the R.F.C. granted a loan of $250,-000.…