Eldon R. Kenseth and Susan M. Kenseth - Page 10

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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