- 56 -
also Robinson v. Commissioner, 102 T.C. 116 (1994), affd. on this
issue 70 F.3d 34 (5th Cir. 1995).
As an initial matter, we find that the State court
proceeding did not involve a real and bona fide controversy
between adverse parties, and that the superior court's decree was
not the result of its consideration of the merits of Ms.
Trompeter's claim. See Estate of Nilson v. Commissioner, T.C.
Memo. 1972-141. Ms. Trompeter was the coexecutors' mother, and
the coexecutors' actions during the State court proceeding were
more akin to daughters' trying to share inherited wealth with
their parent at the expense of the tax collector, than a party
suing another in a truly adversarial proceeding in a court of
law. As a point of fact, the coexecutors did not investigate or
legitimately challenge the validity of Ms. Trompeter's claim
before they let their mother receive a significant part of the
decedent's estate.
Nor did Ms. Trompeter pursue payment on the "settlement" in
a meaningful manner. She only pursued collection of the
"settlement" when the superior court informed the parties there
that they had neglected to file a dismissal in the case. Before
this time, neither party had acted on the settlement or moved
toward final judgment in 3 years. The estate had recovered the
191 coins from Superior in 1994, and the estate's recovery of the
coins was the prerequisite to payment under the "settlement"
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