John T. Barrett, Jr. and Jane W. A. Barrett - Page 19

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          dated September and December 29, 1989, as evidence of Drexel’s              
          affirmation that the note was worthless.  Respondent contends               
          that the notation does not establish worthlessness because there            
          is no conclusive evidence of its meaning.  Respondent posits that           
          the notation might simply have meant that the market value was              
          “not available” because the note was not marketable.  We agree.             
          Petitioners did not offer the testimony of a Drexel employee or             
          other credible evidence as to the meaning of the notation.                  
          Consequently, we do not find the notation to be persuasive                  
          evidence that the note was worthless.                                       
               Petitioners also contend that Drexel's insolvency during               
          1989 is shown by the allegations of Drexel’s insolvency made in a           
          complaint filed in a 1992 defendant class action by Drexel                  
          against its employees for recovery of alleged preferential and/or           
          fraudulent transfers.  However, that complaint was admitted into            
          evidence, subject to respondent’s objection to its relevance,               
          solely for the purpose of showing that the complaint was filed,             
          not for the purpose of allowing the hearsay statements made in              
          the complaint to be admitted for the truth of the matters                   
          asserted in the complaint.  Consequently, we do not find that it            
          has any bearing on the question of the worthlessness of the                 
          note.8                                                                      



          8                                                                           
               We accordingly sustain respondent’s relevance objection.               




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