Sweeney v. Earle C. Anthony, Inc.

A stipulation of facts was filed herein which discloses, among other things, that defendant’s business was operated in two separate divisions: automotive and radio. Both television and radio activities were conducted by the latter.

In 1944, defendant, as owner of radio station KECA, made verbal agreements with key employees of both divisions: that they would receive specified percentages of the net profits derived from both divisions. The “arrangements were not limited to any profits over any fixed base.” Upon sale of station KECA these employees were paid their percentages of the capital gain…