Ralph Louis Vitale, Jr. - Page 11




                                        -11-                                          
          The corporation had been the subject of a continuing investiga-             
          tion by State authorities.  On November 8, 1996, petitioner filed           
          a proof of claim with the U.S. Bankruptcy Court for the District            
          of Utah in the amount of $17,854 for unpaid royalties and breach            
          of contract.                                                                
               After securing the return of his rights in "Searchlight,               
          Nevada", petitioner began soliciting other publishing houses to             
          have his book published a second time.  Petitioner received                 
          several responses, including a request by the president of                  
          Regnery Publishing, Inc., and an invitation by the editor-in-               
          chief of Farrar, Straus & Giroux, Inc., to submit his manuscript            
          for review.  He also began to send letters to literary agents               
          soliciting their interest in his book.10  At the time of trial,             
          petitioner had since rewritten parts of "Searchlight, Nevada" and           
          had sent his revised manuscript to Paladin Press of Boulder,                
          Colorado, at its request.  Petitioner also received a letter from           

               9(...continued)                                                        
          Bankruptcy Code.  The bankruptcy court had since converted the              
          case to a ch. 7 liquidation.                                                
               10Literary agents act on behalf of authors to get publishers           
          to buy the rights to their clients' works.  In exchange, agents             
          usually collect a commission based on what the author earns from            
          his work's eventual sales.                                                  
               Petitioner did not engage a literary agent for the first               
          publication of "Searchlight, Nevada".  Instead, he chose to study           
          the book market and identify publishers which he thought might be           
          interested in his work.  For the book's second publication,                 
          though, petitioner did attempt to have an agent represent him.              






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