- 13 - however, consider extrinsic evidence. Threlkeld v. Commissioner, 87 T.C. at 1306; Church v. Commissioner, 80 T.C. 1104, 1107 (1983); Fono v. Commissioner, 79 T.C. 680, 696 (1982), affd. without published opinion 749 F.2d 37 (9th Cir. 1984). We must determine the nature of petitioners’ claims and the intent of the payor (du Pont) in making the $500,000 payment. We look to petitioners’ First Amended Complaint for Damages and Demand for Jury Trial (the complaint) to determine the nature of their claim. The complaint asks for damages and avers essential facts. Petitioners claim that the Benlate they purchased was defective and proved detrimental to their nursery products. They claim that, as the direct and proximate result of their use of the defective Benlate, among other things, they suffered damage to their business reputation. They base their claims for damages against du Pont on theories of strict liability in tort and negligence. Nowhere in the complaint, however, do petitioners use the term “personal injuries” to describe the injuries claimed to have been suffered as the result of their use of Benlate. Petitioners have not argued to us (nor do we believe) that all injuries attributed to a defendant under a theory of strict liability in tort or caused by a defendant’s negligence necessarily are personal injuries within the meaning of section 104(a)(2). Moreover, as we said supra in section III.D.1., damage to business reputation is not, per se, a personal injuryPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011