- 22 -
22, 1994, the plaintiffs offered to settle the lawsuit for
$2,800,000, and that settlement offer was accepted by du Pont on
the same date. The $2,800,000 settlement negotiated between the
parties in the lawsuit was part of a global settlement of some
200 claimants against du Pont and was paid by du Pont as a result
of the jury verdict. Pursuant to the stipulation of settlement
to which the parties in the lawsuit agreed on April 22, 1994
(stipulation of settlement), (1) du Pont also agreed to pay the
plaintiffs' costs of the lawsuit, (2) those parties executed a
document entitled "RELEASE, INDEMNITY AND ASSIGNMENT", and (3) a
notice of voluntary dismissal of the appeal of that lawsuit was
filed on or about May 13, 1994.
Of the $2,800,000 that du Pont agreed in the stipulation of
settlement to pay the plaintiffs in the lawsuit (total settlement
amount), du Pont paid $450,000 to their attorneys, $31,139.14 to
various third parties, a total of $695,658.26 to Ms. Estes, and
a total of $1,623,203 to Mr. Henry (settlement payment),
$800,702.60 of which du Pont paid Mr. Henry around June 1994
and $822,500 of which it paid him around August 1994.
Du Pont prepared two Forms 1099-MISC (one for 1993 and one
for 1994) relating to the $2,800,000 that it paid pursuant to the
stipulation of settlement. Both of those forms indicated that
that amount was nonemployee compensation and that Fred Henry's
Paradise of Orchids and Krupnick, Campbell (the law firm which
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011