Diamond Claims & Investigation Services, Inc. - Page 17

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          Appeals affirmed the imposition of sanctions and the award to the           
          plaintiffs of lost profits damages, indemnity damages, and                  
          punitive damages and reversed the award of reliance damages.                
               Satisfaction of the District Court's                                   
               Judgment in the Farmers Lawsuit                                        
               On or about August 4, 1988, the attorneys representing FIG             
          in the Farmers lawsuit delivered to the plaintiffs' attorneys,              
          Markowitz & Herbold, a check issued by FIG, dated August 3, 1988            
          (FIG check), in the amount of $2,254,983 (proceeds of the Farmers           
          lawsuit) and a letter attached thereto (FIG letter).  The FIG               
          check was made payable to the plaintiffs in the Farmers lawsuit             
          (viz., DCI, Peter Diamond, and Shirley Diamond) and to Markowitz            
          & Herbold.  The FIG letter stated, inter alia, that the check               
          represented full payment by FIG of the plaintiffs' claims, as               
                    Amount of judgment            $1,850,8909                         
                    Interest on judgment          161,821                             
                    Attorneys' fees               220,36010                           

          9  This amount consisted of all the damages that the District               
          Court awarded to the plaintiffs, except reliance damages.                   
          10  Although the District Court awarded the plaintiffs $220,360             
          in attorneys' fees and costs, the FIG letter indicated that the             
          proceeds of the Farmers lawsuit included a total of $226,212 in             
          attorneys' fees and costs.  Moreover, although the District                 
          Court's judgment awarding attorneys' fees and costs to the                  
          plaintiffs does not indicate that the plaintiffs were also                  
          awarded interest on those fees and costs, the FIG letter indi-              
          cated that the proceeds of the Farmers lawsuit included a total             
          of $15,369 in interest on those fees and costs.  The record does            
          not explain the reasons for those discrepancies, and the parties            
          do not advance any argument about them.  Despite the foregoing              

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