- 14 - As previously discussed, damages received in a tort action may be excluded from income only when received on account of personal injuries or sickness. As noted in our original opinion, tortious interference with a business relationship is part of a larger body of tort law aimed at protecting relationships, some economic (for example, interference with prospective economic advantage) and some personal (for example, interference with family relations, or libel and slander). Keeton et al., Prosser & Keeton on the Law of Torts, sec. 129, at 978 and nn.5 and 6 (5th ed. 1984). Petitioners have failed to demonstrate that the jury award for tortious interference with a business relationship was on account of anything other than injury to petitioner’s economic relationship with his bank. Petitioners’ reliance on Noel v. Commissioner, T.C. Memo. 1997-113 (holding that part of a settlement payment attributable to a tortious interference claim was on account of personal injuries), is misplaced. In Noel, the evidence before the Court indicated that the tortfeasor’s actions caused the taxpayer to suffer emotional distress and damage to his business reputation, that the taxpayer discussed these damages with the tortfeasor during the settlement negotiations, and that the payment by the tortfeasor was intended partly to cover this tort claim. The only evidence petitioners cite to support their argument that the tortious interference award was on account of personalPage: 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