Walter E. Hess and Helen L. Hess - Page 8

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          On June 30, 1993, after petitioner had moved the District Court             
          to reconsider and clarify its rulings, the court affirmed its               
          rulings stating that petitioner's claims for lost equity, whether           
          explicitly or implicitly raised, were all dismissed.                        
               On June 2, 1993, after receiving the court's ruling on the             
          summary judgment motions, Balfour rejected petitioner's $1.86               
          million offer and offered to settle the litigation for $200,000.            
          This offer included compensation for lost commissions; it did not           
          include any compensation for a purported constructive discharge             
          or physical or emotional injury.  Petitioner rejected this offer.           
               On or about August 26, 1993, petitioner served additional              
          interrogatory responses upon Balfour's attorney identifying his             
          damages as follows:  (1) $2,118,180 for breach of contract,                 
          (2) $5,848,501 for failure to pay wages, (3) $294,136 for                   
          unlawful deduction from wages, (4) $5,317,121 for conversion of             
          commissions, (5) $2,497,734 for equity in sales territory, and              
          (6) $7,968,252 for constructive discharge.  Petitioner alleged              
          that his damages for constructive discharge were:  (1) $152,092             
          for commissions earned before June 14, 1991, (2) $421,440 for               
          commissions earned after July 1, 1991, through December 31, 1993,           
          under the AT&T contract, (3) $88,478 for commissions earned from            
          June 15 through December 31, 1991, under the Prudential contract,           
          (4) $2,497,734 in earned equity payments, (5) $2,812,508 in lost            








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