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Wodlinger] think that's the thing to do, you're my
counsel, I guess we'll have to do so. [Emphasis
added.]
In response to questioning by the Court, Frank Wheaton testified
that he instructed Gilson to enter into a settlement agreement on
the terms presented by the Government and then subsequently
decided that he did not want to settle the cases. Frank Wheaton
also testified that he understood that the settlement agreement
would encompass the docketed cases and would not affect
petitioners' tax liabilities with respect to any tax years not
before the Court. Under these circumstances, we find that Gilson
possessed express authority to enter into the settlement
agreement on behalf of Dorchester and Frank Wheaton.
C. Offer and Acceptance
On November 3, 1995, Garofalo transmitted a letter via
facsimile to Gilson (the November 3 letter). The November 3
letter contains respondent’s proposed settlement figures for the
docketed cases. The November 3 letter required a response by
11:00 a.m., on Monday, November 6, 1995. In a telephone
conversation with Gilson during the morning of that Monday,
Garofalo told Gilson of certain changes to those proposed
settlement figures. Gilson told Garofalo that the Government’s
proposals were acceptable. At some point during the morning of
November 6, 1995, Garofalo or his secretary transmitted by
facsimile, and Gilson received, a letter (the November 6 letter),
which made the changes to the Government’s proposed settlement
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