- 18 - actual experience; and was recorded in contemporaneous records kept in computer spreadsheets.” We, thus, assume that petitioners' implicit defense to the claim of negligence rests on the accuracy of their time allocations. Petitioners bear the burden of proof. Rule 142(a). Petitioners have not carried that burden. Petitioners make much of the unusual events, which occurred during the years at issue, and which, petitioners claim, required BKK to dedicate unusual amounts of time to certain of the purchasing corporations. Those events, however, do not account for petitioners' allocations, and the record does not support petitioners' contentions that the owner-managers spent most of their time working on behalf of K-K and Kenco. Although no special projects required additional managerial attention for Kenco's restaurants in 1991, unlike in 1990, the management cost fee allocated to Kenco for 1991 was higher in absolute terms, and only slightly lower in relative terms, than the fee BKK charged to Kenco in 1990. Although petitioners do not claim that K-K required unusual management attention in 1992 as compared to 1991, its allocated fee was higher in both absolute and relative terms in 1992 than in 1991. It is telling that, between 1990 and 1992, GMK's management cost fee allocation increased more than 900 percent. That percentage increase substantially exceeds the increases in the management cost fee allocated to the other members of the commonly controlled group. In relative terms,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011