West Los Angeles Institute for Cancer Research v. Ward Mayer

BROWNING, Circuit Judge:

In August 1951, Ward Mayer and his wife and son — who, with D. F. Kinder, were the stockholders of Timber Structures, Inc. — contracted to sell the business to the West Los Angeles Institute for Cancer Research, a tax-exempt entity. The transaction was patterned after the sale and leaseback agreements described in the opinions in Commissioner of Internal Revenue v. Brown, 380 U.S. 563, 85 S.Ct. 1162, 14 L.Ed.2d 75 (1965) and 325 F.2d 313 (9th Cir. 1963). In March 1960, the Mayers 1 brought this action to recover the property. The district court granted the relief…