L. C. Thomsen & Sons, Inc. v. United States

STEVENS, Circuit Judge.

In 1959 taxpayer, a manufacturer of bottling equipment, purchased insurance on the life of its exclusive distributor in California. He was killed in a fire in 1967, and insurance proceeds, including a regular death benefit, an accidental death benefit, and interest, totaling $50,444.92, were thereafter paid to taxpayer. At the time of his death, distributor owed the taxpayer $48,053.97. Taxpayer’s receipt of the insurance proceeds, all of which it retained, did not liquidate the debt. The question on this appeal is whether it was error for the district court to instruct…