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observe a widening rift between the attorneys who are
supposed to work for us and who are, instead, looking
after their strangly [sic] perceived protection from
liability. My interest in these proceedings and what
I consider to be the best interest of my friends is
arrogantly overlooked and we are, if your scheme of
things would prevail, relegated to onlookers to a
spectacle for which we are compelled to pay but in
which we are not allowed to take part. It is simply
absurd.
On January 12, 1988, Mr. Kersting issued a letter
encouraging nontest case Kersting program participants who had
paid $550 to Chicoine and Hallett for representation in the
settlement process to "recall your funds".
By letter dated January 20, 1988, Mr. Chicoine notified the
test case petitioners represented by his firm that Mr. McWade was
offering a 20-percent settlement. Mr. Chicoine's letter states
in pertinent part:
Mr. McWade has stated that you may settle your case
along the grounds set forth above. Since you are a
test case, however, you will not be permitted to
withdraw if you wish to enter into the settlement
proposed. Accordingly, we would enter into an
agreement with Mr. McWade that regardless of the
outcome of the trial, you would be allowed the
settlement. Thus, if the case were lost in its
entirety, your tax deficiency would be calculated in
accordance with the settlement.
By letter dated January 22, 1988, Mr. Hallett informed
Mr. Kersting that Chicoine and Hallett were seeking an opinion
from an expert on legal ethics whether it would be appropriate
for the firm to accept new clients seeking to settle Kersting
project cases. However, Mr. Hallett stated that the firm would
continue to inform its existing clients regarding the status of
settlement discussions.
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