- 31 -
complaint, and (3) the Bank Defendants were aware of the specific
emotional harm done to dozens of the plaintiffs, through their
depositions and answers to interrogatories. Every is not
controlling.
We therefore hold that the underlying claim giving rise to
the recovery was based upon tort or tortlike rights, and that the
settlement proceeds were received on account of personal
injuries. The amounts recovered are excludable from income under
section 104(a)(2).
To reflect the foregoing,
Decisions will be entered
for petitioners.
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Last modified: May 25, 2011