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the causes of action are different, where the parties are the
same or in privity, where the issue is the same, and when there
has been no change in the law intervening between the time of the
first case and the time of the second. Montana v. United States,
440 U.S. 147 (1979); Commissioner v. Sunnen, 333 U.S. 591 (1948);
Meier v. Commissioner, 91 T.C. 273 (1988); Peck v. Commissioner,
90 T.C. 162 (1988), affd. 904 F.2d 525 (9th Cir. 1990).6
The prior forfeiture case before the District Court for the
Western District of North Carolina concerned the forfeiture of
specific assets. The District Court made no findings of fact
having any relevancy to the instant case in determining the
amount of petitioners' taxable income. The issue of petitioners'
taxable income was not before the District Court. However, the
District Court did hold that Martha was an innocent party under
21 U.S.C. sec. 881(a)(7) (1995) (hereinafter the Federal
forfeiture law).7 Nevertheless, such finding is not dispositive
6 The Restatement defines collateral estoppel in the following manner:
when an issue of fact or law is actually litigated and determined by a valid
and final judgment, and the determination is essential to the judgment, the
determination is conclusive in a subsequent action between the parties,
whether on the same or a different claim. 1 Restatement, Judgments 2d, sec.
27 (1982); see also Meier v. Commissioner, 91 T.C. 273 (1988).
7 21 U.S.C. sec. 881(a)(7) (1995) provides for the forfeiture to the
United States of the following:
All real property, including any right, title, and interest
(including any leasehold interest) in the whole of any lot or tract of land
and any appurtenances or improvements,which is used, or intended to be
used, in any manner or part, to commit, or to facilitate the commission of, a
violation of this title punishable by more than one year's
imprisonment, except that no property shall be forfeitedunder this
paragraph, to the extent of an interest of an owner, by reason of any act or
omission established by that owner to have been committed or omitted without
the knowledge or consent of that owner. [Emphasis added.]
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