Newark Morning Ledger Company, a Corporation of the State of New Jersey v. The United States of America

OPINION OF THE COURT

Mr. Justice CLARK:

This appeal, brought under 28 U.S.C. § 1291, tests the validity of a refund of federal income taxes ordered by the District Court covering legal expenses incurred by the Newark Morning Ledger Company (Ledger) in protracted litigation with the Republican Company (Republican), in which Ledger, as a stockholder, complained of malfeasance by Republican’s management. The facts were stipulated, cross motions for summary judgment were filed, and the court ordered the refund to be paid. The Government raises two points here: (1) the expenses incurred by Ledger…