Clarence D. Kightlinger - Page 16

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          settlement proceeds for any particular claim.  However, the joint           
          stipulation of settlement provided that an independent trustee              
          would determine appropriate amounts to compensate individual                
          class members for their "demonstrated economic harm".  Guidelines           
          outlined in the joint stipulation of settlement based economic              
          harm on the loss or reduction of wages resulting from the loss of           
          employment.  Personal injury was not considered.  Therefore, the            
          settlement agreement indicates that the Defendants paid the                 
          settlement proceeds on account of economic harm arising from the            
          deprivation of a class member's opportunity to earn wages.  Such            
          recovery is clearly not on account of personal injury.                      
               We shall not, however, limit our inquiry to the joint                  
          stipulation of settlement.  We shall consider other factors to              
          ascertain the intent of the Defendants in paying the settlement             
          proceeds.  See Knuckles v. Commissioner, supra; Robinson v.                 
          Commissioner, supra; Stocks v. Commissioner, supra.                         
               B.  The Complaint                                                      
               When payments are received pursuant to a settlement                    
          agreement from which we cannot clearly discern why the payments             
          were made, the underlying complaint is normally examined as an              
          indicator of the payor's intent.  See Robinson v. Commissioner,             
          supra.  Logic dictates that defendants will ordinarily determine            
          their liability by taking into account the allegations made in              
          the complaint.  See Threlkeld v. Commissioner, supra; Church v.             

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