- 8 -
for the Fifth Circuit in Cotnam v. Commissioner, supra.4 See
also Baylin v. United States, 43 F.3d 1451, 1455 (Fed. Cir. 1995)
(Maryland attorney lien statute does not give attorney an
ownership interest in claim of his or her client); Estate of
Gadlow v. Commissioner, 50 T.C. 975, 979-980 (1968) (Pennsylvania
law distinguishable from Alabama statute applied in Cotnam).
We hold that Ms. Coady's award, undiminished by the amount
that she paid her attorneys, is includable in petitioners' 1994
gross income under the principle of Lucas v. Earl, 281 U.S. 111
(1930).5 Accord Estate of Gadlow v. Commissioner, supra at
979-980; Petersen v. Commissioner, supra at 151-152; Hardin v.
Commissioner, T.C. Memo. 1997-202; Martinez v. Commissioner,
4 The Nebraska provision as set forth in Petersen v.
Commissioner, 38 T.C. 137, 152 n.9 (1962), provided:
�7-108. Attorney's liens. An attorney has a
lien for a general balance of compensation
upon any papers of his client which have come
into his possession in the course of his
professional employment; and upon money in
his hands belonging to his client, and in the
hands of the adverse party in an action or
proceeding in which the attorney was employed
from the time of giving notice of the lien to
that party.
The South Dakota provision was similar to the Nebraska provision.
Id.
5 We reject petitioners' claim that this principle is
inapplicable because Ms. Coady's claim was "contingent" or
"uncertain". The cases cited by petitioners to support that
claim are distinguishable on their facts.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011