George and Kathleen Knevelbaard, et al. - Page 20

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                  Other disputed paragraphs seek to establish that                                    
            petitioners' representatives in the milk producers action                                 
            utilized tax advice regarding the settlement.  Since this may be                          
            relevant to the motivation of the parties in structuring the                              
            settlement, we overrule the objection.                                                    
                  Petitioners also object to paragraph 51 and Exhibit 21-U on                         
            the basis of rule 408 of the Federal Rules of Evidence.  The                              
            exhibit is a letter from  plaintiffs' attorneys to the Bank                               
            Defendants' attorneys, regarding an offer of settlement.  The                             
            letter is not admissible to show liability for or invalidity of                           
            the claim.  It is admissible to show other circumstances                                  
            surrounding the negotiations; however, we note that the offer                             
            bears little or no relation to the final settlement, either in                            
            amount or structure, and we give it little weight.                                        
                  Finally, we overrule petitioners' objection to Exhibit 35-                          
            AI, stipulation re amendment of Exhibit A to milk producer                                
            plaintiffs' third amended complaint.  It is an intrinsic part of                          
            Exhibit 16-P, the complaint, which has been stipulated and forms                          
            an important part of the evidence.  Exhibit 35-AI is received.                            
            The Settlement                                                                            
                  Respondent contends the settlement payment was really for                           
            the lost milk under the contract between the milk producers and                           
            Knudsen.  Petitioners contend it was for emotional distress, as                           







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