Citations
- 26 F.2d 481
Full opinion text
DAWKINS, District Judge.
In these two suits the plaintiffs, husband and wife, living under the régime of the community of the Louisiana law, seek to recover sums paid under protest as income taxes for the year 1921. The circumstances out of which the liability for taxes is alleged to have arisen are as follows;
On June 23, 1920, there was pending in this court a suit, No. 1235, by Lillie G. Taylor, colored, against George West, involving the title to the following property, situated in what was known as the proven Homer oil field in Claiborne parish, to wit:
“All of the southeast quarter of the southeast quarter (SEM of SEM), section eighteen (18), lying south of the Minden and Sykes Ferry road; the northeast quarter of the northeast quarter (NEM of NEMi), section nineteen (19); and all of the northwest quarter of the northeast quarter (NWMt of NE14), section nineteen (19), except that part thereof known as a part of the Len Langston farm; and the northwest quarter of the northwest quarter (NWM. of NW%), section twenty (20), township twenty-one (21) north, range seven (7) west, Claiborne parish, Louisiana, being 91 acres more or less.”
The law firm of Foster, Looney & Wilkinson, of Shreveport, La., of which said F. J. Looney was a member, had acquired from the said Lillie G. Taylor a one-half interest in such title as she owned at that time to said property which had been previously leased by her to the Caddo Central Oil & Refining Corporation, with the reservation of a one-eighth royalty, and which had the effect of vesting in the said law firm a one-half interest therein, or a one-sixteenth of the rental or royalty that might arise therefrom.
One George West also claimed Hie ownership of said land, and had, previous to the agreement hereinafter referred to, given to H. C. Walker, Jr., for the firm of Goldstein & Walker, a lease upon the same land, retaining a one forty-eighth royalty for himself, and said Walker in turn assigned the lease to the Gulf Refining Company of Louisiana, reserving a one twenty-fourth royalty interest. "
On June 23, 1920, the said West and Walker & Goldstein, on the one part, and the individual members of the firm of Foster, Looney & Wilkinson, to wit, J. M. Foster, F. J. Looney (one of the plaintiffs herein), and W. A. Wilkinson, entered into an agreement, the pertinent provisions of which are as follows :
“Whereas, the parties hereto desire and have agreed to compromise the aforesaid lawsuit in so far as it relates to the interest above described, together with one-sixth (%) of the royalty reserved by the said George West under the aforesaid lease to H. C. Walker, Jr., which one-sixth (%) is equivalent to one forty-eighth (Ms) of the oil, gas, and other minerals produced from the aforesaid leases; and,
“Whereas, all of the parties hereto have agreed that such compromise shall be effected by the sale by the said H. C. Walker, Jr., and the said Elias Goldstein to the said vendee of the said one twenty-fourth (M