- 3 - Because of the advance payment of commissions and loans made to petitioner, American regularly carried a debt on its books for petitioner. In 1994, when petitioner left employment with American, he had an obligation to repay American for commission advances and loans. After petitioner resigned from American, he worked for Capitol American Group of Companies (Capitol) and Life USA Insurance Co. (Life USA). During the year in issue, petitioner received income of $175 and $797 from Capitol and Life USA, respectively. B. Lawsuit and Settlement Agreement In 1994, American sued petitioner in the 74th Judicial District Court of McLennan County, Texas, for allegedly taking policyholders from American and for advances and loans American had made to petitioner during his employment. Petitioner threatened to countersue. On April 25, 1995, petitioner entered a settlement agreement with American (settlement agreement). The settlement agreement provided that American would look exclusively to renewal commissions due or to become due to petitioner to satisfy the outstanding loan balance. In exchange, petitioner released all claims and rights to renewal commissions attributable to past services rendered for American that were due to petitioner or to become due in the future.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011