United States v. Failla

MARIS, Circuit Judge.

The question presented on this appeal is whether, in an action brought by the United States in the district court for the refund of excessive profits made on a government contract, the district court has jurisdiction to consider a defense that the tax credit allowed by the Government by reason of the return of the excessive profits has been incorrectly computed and should be larger in amount. The question arises from the following facts:

Anthony Failla1 and Marian Failla, whom we shall call the Contractors, were partners doing business as the New Jersey Gear and…