- 14 - Although the existence of tort or tort type claims is necessary, that alone is not sufficient to enable the settlement proceeds to come within the ambit of section 104(a)(2); a showing that the $45,000 settlement was “on account of personal injury or sickness” is also required. See Commissioner v. Schleier, supra. Accordingly, we next address whether Mr. Norton recovered damages on account of traditional personal injury claims such as physical pain and suffering and/or emotional distress. See id. at 327. In count one of the Harman complaint, Mr. Norton alleged the following: “As a result of this dispossession, the plaintiff was deprived of one hundred fifty (150) tons of herring * * * [in addition] [he] also suffered additional expenses and inconvenience for the use of his crew to release the catch.” Counts two, three, and four alleged similar damages. In addition, the only damage counts five and six alleged related to the loss of valuable fishing “points”. Moreover, no physical, mental, or emotional injuries were pleaded in the complaint. Accordingly, we conclude that the injury giving rise to the Harman lawsuit was economic in nature. The damages Mr. Norton sought were for the loss of anticipated profits from his fishing activities. Indeed, Mr. Norton’s own attorney testified that Mr. Norton’s primary objective in bringing the lawsuit was to protect his commercial fishing business. There is no evidence indicating that the settlement proceeds werePage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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