- 16 -16 The suit was settled in 1965; the plaintiffs each received $175,000. In Parker v. United States, supra at 43-44, the Court of Claims stated: The Internal Revenue Service determined that the settlement transaction resulted in the sale or exchange of a capital asset, namely, the taxpayers' "claim" against Bertha's estate, that a substantial amount of capital gain, attributable to the appreciation of the claim over the some twenty years it remained unasserted was thereby realized, and that this gain amounted to 75 percent of the settlement proceeds. The plaintiffs paid the income tax deficiencies asserted by the IRS, filed claims for refund which were disallowed, and then filed a petition in the Court of Claims seeking a refund under the doctrine of Lyeth v. Hoey, supra. The Court of Claims, citing Lyeth, framed the issue as "In lieu of what did Marilyn and Robert [the plaintiffs] receive $350,000 in settlement of their cross-complaint against the other members of the Segerstrom family." Parker v. United States, supra at 47. The court eliminated the claim for $10 million of punitive damages from consideration since the plaintiffs conceded the issue at settlement. Aided by appraisals of the land in 1944 and 1965, the court calculated the 1965 value of the plaintiffs' claim to a 1944 inheritance of real property by applying an appreciation factor of 500 percent. The court found the 1965 adjusted land value to be $290,000. The court found the plaintiffs' demands for lost profits to be inflated andPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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