F. Browne Gregg, Sr., and Juanita O. Gregg - Page 4




                                        - 4 -                                         
          Commissioner’s determination of a deficiency is ordinarily                  
          presumed correct, and the taxpayer has the burden of proving it             
          is erroneous or arbitrary), affg. T.C. Memo. 1993-17.  As we                
          discussed in our original opinion and as further discussed below,           
          petitioners have failed to show that the subject jury awards were           
          received on account of personal injuries such as distress,                  
          humiliation, mental anguish, or any other type of personal                  
          injury.  Indeed, the record does not establish that petitioner              
          suffered personal injuries.  To the contrary, as discussed in our           
          original opinion and below, the evidence strongly indicates that            
          the injuries redressed by the jury awards in question were                  
          economic injuries.2                                                         
          Petitioner’s Compensatory Damages for Fraudulent Inducement                 
               On supplemental brief, petitioners argue, in conclusory                
          fashion and without any references to the pages of the                      
          transcript, the exhibits, or other sources relied upon to support           



               2 As we discussed in our original opinion, in construing               
          sec. 104(a)(2), the Supreme Court and other courts have                     
          distinguished personal injuries and economic injuries.  In Fabry            
          v. Commissioner, 223 F.3d 1261, 1270 (11th Cir. 2000), revg. 111            
          T.C. 305 (1998), the Court of Appeals appeared to recognize this            
          distinction, stating that in a nonphysical personal injury case,            
          the taxpayer must establish a direct causal link between the                
          damages received and “an intangible element of the injury (i.e.,            
          emotional distress, pain and suffering, loss of reputation,                 
          etc.).”  Similarly, the Court of Appeals distinguished between              
          compensation paid to replace the lost value of the Fabrys’                  
          business and amounts paid to compensate them for “distress,                 
          humiliation and mental anguish suffered by the Fabrys through the           
          loss of their good name”.  Id.                                              





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

Last modified: May 25, 2011