Estate of Robert E. Cartwright, Deceased, Dorothy G. Cartwright, Executrix - Page 13

                                       - 13 -                                         

          amount of the life insurance proceeds.  Philip Borowsky testified           
          that the parties intended that the $5 million payment to                    
          decedent’s estate was both to redeem decedent’s CSB stock and to            
          compensate decedent for his work in process.  His testimony was             
          consistent with the plain language of the 1988 amendment.                   
               Petitioner contends that CSB and decedent agreed that $5               
          million was an estimate of the value of decedent’s name and                 
          reputation, i.e., goodwill, to CSB.  We agree that decedent’s               
          name and reputation were very valuable to CSB.  However, CSB did            
          not pay the $5 million for goodwill; CSB paid it for decedent’s             
          stock and any claim to any cases and work in process that might             
          otherwise be made on behalf of decedent.                                    
               Petitioner argues that the 1973 agreement and the 1988                 
          amendment, which provide that decedent agrees to sell his                   
          interest (in the singular) in CSB, show that the parties meant              
          that the insurance proceeds were paid solely to redeem decedent's           
          CSB stock.  We disagree.  The 1973 agreement and the 1988                   
          amendment show that CSB and decedent intended that the payment              
          was both for decedent's stock interest and his interest in fees             
          earned on work in process.                                                  
               We conclude that CSB's payment of the life insurance                   
          proceeds to decedent's estate was for both decedent's CSB stock             
          and his claim based on CSB’s cases or work in process.                      







Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011