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officer (tax adviser), for advice regarding whether settlement
proceeds in petitioner’s lawsuit would be considered nontaxable
income under the tax laws.
The litigation eventually proceeded to mediation. On July
20, 1995, Mr. Simon, petitioner, and representatives for the FDIC
met before a mediator. Larry A. Thomas served as the lead
attorney for the FDIC (the FDIC attorney). The mediation proved
unsuccessful.
Before and after the mediation, the FDIC and petitioner
filed various motions and documents with the U.S. District Court.
On July 19, 1995, the FDIC filed a motion for summary judgment
with regard to petitioner’s amended complaint.6 On July 25,
1995, petitioner filed a supplement to his amended complaint
alleging that First City Bank participated in Mr. White’s alleged
breach of his fiduciary duties to petitioner. Petitioner alleged
that his damages included the value of his Modern World stock at
the time of First City Bank’s wrongful conduct.7 In motions to
dismiss and for summary judgment, the FDIC vigorously contested
both petitioner’s claim that First City Bank caused him to lose
6 The U.S. District Court granted the FDIC’s motion for
summary judgment with regard to Count II.
7 The other damages alleged by petitioner consisted of any
amounts the U.S. District Court might award First City Bank on
its counterclaim against him. Based on this description of
petitioner’s damages, petitioner sought actual, punitive, or
enhanced damages, court costs, and attorney’s fees in the
supplement to his amended complaint.
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