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this portion of the settlement; the actual net amount of the
check to the order of petitioner was $21,246.20.
The portion of the settlement proceeds allocated to
petitioner and not designated as lost wages was $197,024.76,
which the settlement agreement characterized “as and for personal
injury damages which the parties intend as those types of damages
excludable from income under section 104(a)(2) of the Internal
Revenue Code as damages for personal injuries and the
corresponding provisions of the Tax Code of the State of
Wisconsin.” APV issued a check for this amount directly to the
Fox & Fox trust account. Fox & Fox calculated its fee, pursuant
to the contingent fee agreement, using 40 percent of the gross
settlement amount of $229,501.37 allocated to petitioner. After
deducting its fee of $91,800.54 and crediting petitioner with the
$500 “win or lose” retainer payment, Fox & Fox issued a check for
$105,724.22 from the Fox & Fox trust account to petitioner.
With the check that was received from Fox & Fox, petitioner
and every other class member received a settlement statement,
prepared by Fox & Fox, setting forth the recipient’s share of the
total settlement, the legal fee after credit for the retainer,
the net proceeds to the recipient, and the portion from which
taxes would be “deducted”. The recipient signed the settlement
statement, accepting and approving “the distribution of the
proceeds as set forth on this statement.” The recipient also
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Last modified: May 25, 2011