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the Guardian Construction Co., Inc., as corporate partners of
Estes Co. Petitioner was identified as a partner of Estes Co. in
a settlement agreement with an unrelated party executed on
September 21, 1990. The Superior Court of the State of Arizona,
in and for the County of Pima, in a final judgment dated
September 30, 1996, relating to a complaint filed on October 18,
1993, by Walter McBee and Triple L Distributing Co., against
Estes Homes and other entities, found that petitioner's
partnership interest in Estes Homes was terminated before the
subject matter in that case arose.4
OPINION
This Court may exercise jurisdiction over a declaratory
judgment action if there is an actual controversy involving a
determination by the Secretary with respect to the initial or
continuing qualification of a retirement plan. Sec. 7476(a);
Loftus v. Commissioner, 90 T.C. 845, 855 (1988), affd. without
published opinion 872 F.2d 1021 (2d Cir. 1989).
Petitioner contends that the plan did not violate the
exclusive benefit rule and therefore should remain qualified.
Respondent contends that the plan is not a qualified plan within
the meaning of section 401(a) for plan year ended September 19,
1987, and for subsequent years because its investments and
4 The complaint filed in the Superior Court indicates that
the subject matter of the case involved a contract to purchase a
portion of a shopping center entered into on Aug. 3, 1987.
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