- 16 - 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.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011