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during her life. Pursuant to the settlement agreement, David
recognized that the settlement payment he received was for
services rendered and agreed to treat the settlement payment
received as compensation. As required by law for a payor of
miscellaneous income, the executors furnished a Form 1099 to
David.
On July 22, 1993, Daniel filed a lawsuit against decedent's
estate claiming that in 1984 he and decedent had entered into a
binding oral contract under which decedent agreed to provide by
her will that Daniel receive one-third of her estate and that in
return Daniel agreed to provide personal and financial services
to decedent until her death. Daniel provided such personal and
financial services to decedent from 1984 until decedent's death
in 1992.
The executors disputed the validity of Daniel's claim and
litigated the matter on behalf of decedent's estate. The
litigation continued for more than 2 years and included extensive
discovery and contested pretrial matters. After 2 years of
discovery and other litigation matters, the executors and Daniel
agreed to submit Daniel's claim to mediation. Retired Chief
Judge Robert R. Harris, Sr., of the Circuit Court of the City of
Richmond, acted as mediator between the parties. As a result of
the mediation, the executors agreed to pay Daniel $550,000 (in
addition to the $100,000 specific bequest provided to Daniel in
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