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which Modern World did not financially recover. Finally, in
Count V, petitioner alleged that First City Bank “breached the
duty of ordinary care that a creditor in possession of property
securing a debt owes to the pledgor of such property”. As a
result of First City Bank’s breach, petitioner alleged that he
lost the Modern World stock which he had pledged to First City
Bank. Petitioner sought actual and consequential damages, as
well as attorney’s fees, on account of these alleged causes of
action.5
In his original and amended complaints, petitioner did not
allege that First City Bank’s actions damaged his business
reputation. Although Mr. Simon retained an appraiser to value
petitioner’s equity interest in Modern World, he did not hire an
expert to value any harm to petitioner’s business reputation.
Initial Offer of Settlement, Mediation, and Documents Filed With
the U.S. District Court
On October 18, 1994, Mr. Simon made an initial offer of
settlement to the FDIC. Mr. Simon proposed that in settlement of
petitioner’s claims, the FDIC provide petitioner with a $750,000
payment or a $2 million loan for the purchase of another radio
station. The FDIC rejected Mr. Simon’s offer.
In June of 1995, Mr. Simon contacted Pat Cantrell, a tax
attorney, C.P.A., and former IRS revenue agent and Appeals
5 With regard to some counts, petitioner sought incidental,
enhanced, and punitive damages.
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