- 20 - Diamonds and stated in pertinent part: the Diamonds have agreed to forestall collection of rent until such time as judgement has been rendered in the litigation ongoing. This is also in consideration of the risk that litigation may be unsuccessful, and the Diamonds would be out their rent due. They are willing to extend this credit as further consideration to avoid personal litigation expenses in the ongoing suit. Allocation by DCI and the Diamonds of the Proceeds of the Farmers Lawsuit On August 9, 1988, the Diamonds, in their capacity as the officers and shareholders of DCI and in their capacity as the owners of ETS, met with attorneys from Markowitz & Herbold in order to discuss how the proceeds of the Farmers lawsuit should be divided or allocated between DCI and the Diamonds as the owners of ETS. On that date, Markowitz & Herbold issued a check to DCI in the amount of $1,162,780, which contained a notation indicating that that check was in "settlement of claims" and which was endorsed by Mr. Diamond as president of DCI. On that same date, Markowitz & Herbold also issued a check to Mr. Diamond in the amount of $400,000, which contained a notation indicating that that check was in "settlement of personal claim", was endorsed by Mr. Diamond as an individual, and represented the Diamonds' share of the proceeds of the Farmers lawsuit as the owners of ETS. The law firm of Markowitz & Herbold retained $692,203 of the proceeds of the Farmers lawsuit as attorneys' fees and costs that were incurred in the Farmers lawsuit (attor-Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011