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to a car accident. In addition, Ms. King-Knoll received
treatment to help her cope with the problems of other family
members.
When negotiations began, petitioner was not aware of the
tort of intentional infliction of emotional distress (IIED) or
the tax benefits associated with that type of settlement.
Several months after initiating counseling treatment, petitioner
learned of the tax benefits for personal injuries from George
Leonard, who, along with petitioner, was asked to resign on March
23, 1992. Petitioner and Mr. Leonard coordinated their
negotiation efforts with Winston by hiring the same attorney to
represent them, and they regularly discussed the terms of their
respective agreements.
Mr. Leonard supplied petitioner with language for a clause
2(b) specifying that payments received by petitioner were in
satisfaction of personal injury claims. Mr. Leonard also
informed petitioner that Winston had readily agreed to allocate
amounts toward personal injury claims for another partner who was
being severed from Winston. Approximately 1 month after being
informed by Mr. Leonard about the personal injury information,
petitioner proposed that a personal injury clause be inserted
into the draft agreement.
It was not until summer 1993 and after petitioner learned of
the tax benefits relating to personal injury settlements
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