Payoff

Nearly six years after he first brought a libel suit against Hearst Columnist Westbrook Pegler, former War Correspondent Quentin Reynolds last week got ready to collect. The U.S. Supreme Court ended the long legal battle by refusing to review a New York federal jury's $175,001 award to Reynolds (TIME, July 5, 1954 et seq.), after Pegler branded him a nudist and coward.

But Pegler will not be out of pocket: under his contract Hearst is liable for the tab, which will run to more than $200,000, counting attorneys' fees and 6% interest from the day of judgment. Nor is the fat award all pure gravy for Reynolds. The U.S. Internal Revenue Service now has a lien against him for $40,000 for back taxes, also expects to collect income tax on the whole sum. But Reynolds' lawyer believes that the sum is taxfree; thus the award may land in court again.

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