- 7 -
as compensation for her personal injuries and should be excluded
from gross income under section 104(a)(2). Petitioners contend
that any intimation of interest from the checks or otherwise
reflects only internal bookkeeping utilized by the Doctor's
Insurance and the State's Insurance.
On February 5, and 8, 1993, approximately 2 weeks after the
January 19, 1993, court judgment was entered, the Doctor's
Insurance and the State's Insurance issued to petitioner the four
checks. With regard to the three checks issued to petitioner by
the Doctor's Insurance, according to testimony at trial and
correspondence in evidence, the $100,000 check constitutes the
$100,000 limit of liability on damages under Louisiana law, the
$7,473 check constitutes court costs, and the $17,930 check
constitutes interest. We conclude that the check for $17,930
constitutes interest.
With regard to the $195,477 check issued to petitioner by
the State's Insurance, the numerical code and other evidence at
trial establish that $125,477 thereof constitutes interest. We
so hold.
Petitioners' argument that a separate settlement existed
between petitioner, the Doctor's Insurance, and the State's
Insurance disparate from the court judgment entered in
petitioner's favor is not supported by the evidence. The three
checks received from the Doctor's Insurance total $125,403, the
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011