Lewis Sagal & Co. v. Smith

McVICAR, District Judge.

Lewis Sagal & Co., appellaht, entered into two written contracts with the Mercer Motors Company, the first was made in October, 1922, and the second in January, 1923. Under these contracts, Sagal & Co. agreed to endeavor to procure for the Mercer Motors Company a reduction in its income tax assessment for the years 1917,1918, and 1919, and a refund of taxes paid. If Sagal & Co. was successful, it was to receive, as payment for services, 20 per centum of the amount of the assessment reduced, and 33% per centum of refund made.

In July, 1923, and before Sagal & Co. had…