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under section 104(a)(2);1 (2) whether fees paid to petitioner’s
attorneys in accord with a contingent fee agreement are
excludable from petitioner’s gross income; and (3) whether
respondent’s determination violated petitioner’s Fifth Amendment
rights in the form of a Government taking without due process of
law or just compensation.
FINDINGS OF FACT2
At all pertinent times, Sigitas J. Banaitis (petitioner)
resided in Clackamas County, Oregon. From 1980 through December
30, 1987, petitioner was employed by the Portland branch of the
Bank of California, N.A. (BCal), as a loan officer and vice
president. As such, petitioner solicited and maintained
customers, mostly businesses, to whom BCal made loans. In so
doing, petitioner and BCal obtained sensitive and highly
confidential information, including information contained in
financial statements. Loan customers were assured by both
petitioner and BCal of confidentiality through oral assurances
and written contracts.
In 1984, Mitsubishi Bank, Ltd. (MBL), a member of the
Mitsubishi Group (MG), acquired a controlling interest in BCal.
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue.
2 The parties have stipulated some of the facts. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference.
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