Frank C. McAuley v. United States of America, John A. Metzger and H. A. Waggoner v. United States of America, Lew Schuek Thuen, A/K/A Saxon Lew v. United States of America, Clifford E. Warling v. United States

525 F.2d 1108 41 A.L.R.Fed. 359, 75-2 USTC P 9854 Frank C. McAULEY, Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee. John A. METZGER and H. A. Waggoner, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee. Lew Schuek THUEN, a/k/a Saxon Lew, Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee. Clifford E. WARLING, Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee. Nos. 74--1354 and 74--1358 to 74--1360. United States Court of Appeals, Ninth Circuit. Nov. 5, 1975. 1 W. V. Clodfelter (argued), Seattle, Wash., for plaintiff-appellant in 74--1354. 2 Harvey S. Poll (argued), Guttormsen, Scholfield & Stafford, Seattle, Wash., for plaintiffs-appellants in 74--1358, 74--1359, 74--1360. 3 William A. Friedlander (argued), U.S. Dept. of Justice, Washington, D.C., for defendant-appellee. OPINION 4 Before WRIGHT and CHOY, Circuit Judges, and PLUMMER, * District Judge. 5 PLUMMER, District Judge, Sitting by Designation. 6 Taxpayers were the five partners of an unincorporated partnership doing business as the Sorrento Hotel. After an unsuccessful real property arrangement under Chapter XII of the Bankruptcy Act, the…