Jerry and Patricia A. Dixon, et al - Page 298




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          reported that Mr. McWade had offered to settle docketed Tax Court           
          cases in accordance with the previously described 20-percent                
          settlement offer, recommended that program participants seriously           
          consider the settlement, and suggested that those who desired to            
          settle on these terms should contact Chicoine and Hallett.                  
               On February 20, 1988, Mr. Kersting wrote to Chicoine and               
          Hallett stating in pertinent part:  "I hereby revoke your                   
          appointment as counsel for the test cases".                                 
               On February 23, 1988, Mr. Chicoine wrote to Mr. McWade                 
          seeking a 20-percent settlement on behalf of test case                      
          petitioners Terry D. and Gloria K. Owens.  Mr. Chicoine's letter            
          states in pertinent part:                                                   
               Mr. Owens understands that not all cases will settle                   
               and you wish to proceed to trial with some test cases.                 
               It is hoped that under the circumstances he may be                     
               withdrawn as a test case.  If this is not possible,                    
               he still wishes to settle the case and enter into an                   
               agreement which will permit him to settle the case                     
               regardless of the outcome of the trial.                                
          Mr. and Mrs. Owens subsequently decided that they would not                 
          continue efforts to settle their case.                                      
               In early March 1988, Chicoine and Hallett began receiving              
          requests from Kersting program participants for return of the               
          $550 retainer fee.  Although Chicoine and Hallett returned the              
          full amount of the fee to all those who requested it, they were             
          informed that they might be billed for a "minimal amount"                   
          reflecting the firm's costs associated with the opening of files            
          and issuance of status reports.                                             



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