- 11 -
interest after December 31, 1986. In support of his motion for
sanctions, Mr. Sticht submitted a declaration stating that he
charged the Rinaldis $325 per hour for trial/appellate services
and $290 per hour for consultation services. Mr. Sticht further
stated that Joe A. and JoAnne Rinaldi have paid him legal fees
and costs of $34,948.43 and $15,741.32, respectively. These
amounts are exclusive of the Rinaldis' attorney's fees and costs
associated with the motion for sanctions.8
Respondent's Objection
Respondent filed objections to the above-described motions.
Respondent contends that none of the petitioners qualifies for an
award of attorney's fees pursuant to section 7430 inasmuch as
petitioners "have not substantially prevailed with respect to
either the amount in controversy or the most significant issue or
set of issues" and petitioners have not established (1) that they
"meet the applicable net worth requirements", (2) that they have
exhausted available administrative remedies, and (3) that "the
protraction of these proceedings, once the case was remanded for
evidentiary hearing, was solely caused by respondent". Finally,
respondent asserts the following grounds in support of the
position that the Court should not award additional sanctions in
8 Mr. Sticht has not disclosed the fees paid by his other
clients--neither those who also participated in the evidentiary
hearing nor any other Kersting tax shelter program participants
that he may represent.
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