- 5 - petitioner and FBC under the breach of contract claims. One of the awards of commissions plus interest was made only to petitioner. The Judgment, entered on June 2, 1986, in the total amount of $1,521,628.04 was based on breach of contract claims. WNIC's insurance carrier appealed the Judgment to the Tenth Circuit Court of Appeals (the Court of Appeals). Petitioner did not appeal the Judgment. Prior to the filing of briefs in the Court of Appeals, the parties entered into a settlement agreement (the Settlement Agreement), effective September 23, 1987. In accord with the Settlement Agreement, petitioner/FBC and WNIC released all claims that the parties to the District Court Case asserted against each other, including all contractual and "extra contractual claims". The Settlement Agreement provided, inter alia: (1) WNIC would make a lump sum payment in the amount of $581,500 to FBC, and (2) WNIC would make guaranteed monthly payments to petitioner in the amount of $3,000 for a period of 240 months ($36,000 per year for 20 years) commencing October 1, 1987. The Settlement Agreement specified that $1,510 of each of the monthly payments would be paid towards satisfaction of the Jury Award. The balance of $1,490 of the $3,000 was not specifically allocated. Petitioners filed joint Federal income tax returns for 1991, 1992, 1993, 1994, and 1995 (the Returns). On the Returns, petitioners reported annuity income of $36,000 per year. Of thisPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011