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communicated with Bolton in an effort to finalize a written
settlement agreement. Morris and Alexander considered the
adversarial nature of the relationship between petitioner and the
defendants reduced prior to the execution of this document since
an agreement in principle had already been attained.
At this time, petitioner expressed concerns about the tax
implications that any settlement of the case would have on him.
Alan Rothfeder, another of petitioner's attorneys, advised
petitioner with regard to the allocation of the settlement
proceeds, and petitioner and his attorneys discussed the
settlement allocation issues with defendants. Blount's sole tax
concern regarding the settlement of the case was that nothing be
done to compromise Blount's ability to deduct any settlement
payment. In that regard, Morris, Alexander, and Reak received
assurances from Blount's comptroller that the proposed settlement
would be deductible by Blount. Alexander, Bolton, and Morris all
actively participated in negotiating the final wording of a
formal settlement agreement letter.
Petitioner accepted Blount's settlement offer on December 2,
1991 (the settlement agreement). The settlement agreement states
in pertinent part as follows:
Dear Lance,
This letter will document the agreement which we
have reached, through our attorneys, on November 28,
1991. [Emphasis added.] We agree as follows:
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