Quantum Company Trust - Page 14




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               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 were                 








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