Zeeman Manufacturing Company, Inc. - Page 26

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          out of fashion.  Accordingly, we hold that the burden of proof              
          remains with petitioner as to the ninth ground.                             
               10. Earthquake                                                         
               Petitioner states that it reasonably accumulated $300,000              
          during each of the years in issue to protect against earthquake             
          damage to the Costa Rican facility.  Petitioner states that Costa           
          Rica lies upon an extremely active fault line and that                      
          earthquakes are frequent.  Petitioner notes that an earthquake              
          severely damaged a house that petitioner provides for its                   
          managers.                                                                   
               Respondent argues that petitioner's discussion of its                  
          potential exposure to earthquake damage is vague and speculative.           
          Respondent contends that petitioner has not presented any                   
          information on its past loss experience because of earthquakes or           
          whether its manufacturing facility has ever suffered earthquake             
          damage.  Respondent argues that petitioner fails to provide                 
          details about the extent of the damage to the managers' house,              
          the cost to repair the damage, whether earthquake insurance was             
          available, and the date that the damage occurred.                           
               We hold that petitioner has not disclosed in its statement             
          sufficient details to permit respondent to prepare for trial.               
          Petitioner's discussion of its potential liability exposure is              
          vague and speculative.  Petitioner has not presented any facts              
          about its loss experience or the loss experience of comparable              






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