William L. and Marsha G. Kidd - Page 6

                                         -6-                                          
          that was based simply on Swiden’s lost wages and employment                 
          benefits.  This proposal was rejected by the plaintiffs.                    
          Finally, on September 17, 1999, while in the presiding Judge’s              
          chambers, counsel for the parties to the lawsuit agreed that the            
          defendants would pay a total of $350,000 to the plaintiffs in               
          settlement of the lawsuit, inclusive of attorney’s fees and                 
          litigation costs, and that the plaintiffs and their attorneys               
          would have to apportion this amount among them.  The record does            
          not explain the mechanics underlying the calculation of the                 
          $350,000 payment.  Nor did the parties to the lawsuit                       
          specifically allocate any portion of that amount to a particular            
          claim raised in the lawsuit.                                                
               The law firm of Nageley, Meredith & Miller (Nageley) and the           
          Pacific Legal Foundation (Pacific) represented the plaintiffs in            
          the lawsuit.  In 2000, the defendants paid the $350,000 to                  
          Nageley in its capacity as the trustee responsible for                      
          distributing the proper portions of this payment to the                     
          plaintiffs and their counsel.  Nageley paid itself and Pacific a            
          total of $75,000 of the $350,000 for attorney’s fees and, on the            
          basis of an agreement between the plaintiffs, paid $132,000 to              
          Kidd and the rest ($143,000) to Swiden.  Nageley did not withhold           
          any Federal income taxes on the $132,000 payment that it made to            
          Kidd.                                                                       








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

Last modified: May 25, 2011