- 12 - It recites that it pertains to the use of certain products during the cultivation of “Hoya, Carnosa, Citrus Liners and Citrus Trees During the Years 1988 - 1991". It contains language releasing du Pont and certain others from all claims relating to the use of the products in question. It contains certain exclusions relating to (1) crops cultivated after the date of the release and (2) land on which the products were used. The release contains no allocation of the consideration to be received by petitioners to any cause of action or injury. Previously, on March 13, 1992, petitioners and du Pont had executed a document entitled “Stipulation of the Parties” (the stipulation), which recites the essential terms of the release but contains certain other terms. Among the terms of the stipulation is the following: "Excepted from the release shall be: a. Soil contamination, b. Personal injury, c. Customer claims." The release lacks specific language from which we can conclude that the $500,000 payment was received on account of personal injuries. Although the release purports to be a general release and contains language releasing du Pont from certain undisclosed or potential claims, that is not sufficient evidence on its own that any of the amount paid in consideration of the release is on account of personal injuries within the meaning of section 104(a)(2). See Scheele v. Commissioner, T.C. Memo. 1997- 426; Galligan v. Commissioner, T.C. Memo. 1993-605. We may,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011