Quantum Company Trust - Page 8




                                        - 8 -                                         
          Issue 2.  Taxability of Settlement Proceeds From Fishing Lawsuit            
               On June 7, 1986, Mr. Norton was fishing for herring on Norton          
          Sound by means of a beach seine.  The open period for herring               
          fishing on that date was 3 hours.  While Mr. Norton and his crew            
          were hauling in herring, they were informed by State Trooper John           
          Harman (Officer Harman) that because the lead line was not fully on         
          the beach as of the end of the 3-hour fishing period, they had to           
          release their catch.  Despite vigorously disputing Officer Harman’s         
          claim, Mr. Norton complied.  As a result, Mr. Norton was                    
          dispossessed of approximately 150 tons of herring valued in excess          
          of $100,000 and was denied “fish tickets”, which are used for the           
          subsequent assignment of limited entry fishing permits. (These              
          permits are awarded by the Alaska Limited Entry Fisheries                   
          Commission (the commission) based upon the amount of fish landed            
          and allow commercial fishermen to maintain and expand their fishing         
          privileges.)                                                                
               On June 2, 1988, Mr. Norton filed a lawsuit against Officer            
          Harman (both individually and as a trooper of the State of Alaska           
          Department of Public Safety, Division of Fish and Wildlife                  
          Protection) and the State of Alaska (the Harman lawsuit), seeking           
          monetary and declaratory relief. The complaint contained six                
          counts:  (1) Trespass to chattels; (2) conversion; (3) negligence;          
          (4) punitive damages; (5) deprivation of civil rights; and (6) a            








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011