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III. Subsequent Proceedings
On September 9, 2002, petitioners retained another attorney,
Mark L. Nowak (Nowak), to represent them with respect to these
cases. In September 2002, Nowak learned about the stipulated
decisions that had been entered. In September 2002, Nowak was
not aware of any basis for challenging the underlying tax
liabilities as set forth in the decisions.
On or about September 23, 2002, petitioners filed in the
Circuit Court of Baltimore County a lawsuit against Jacob (and
others), alleging among other things malpractice by Jacob arising
in part from the transactions at issue. Nowak helped prepare the
complaint in that lawsuit, and his law firm, Rutherford Mulhall,
P.A., represented petitioners. Petitioners and Jacob reached a
basis for settlement in that matter whereby Jacob agreed to pay
petitioners a total of $2.9 million.
OPINION
Petitioners request permission to move the Court under Rule
162 to vacate the stipulated final decisions. That Rule provides
that any motion to vacate a decision shall be filed within 30
days after the decision was entered, “unless the Court shall
otherwise permit.” Where the taxpayers file such a motion after
the Court’s decision has become final, our authority to vacate
the decision, though limited, may be exercised in situations
where the taxpayers establish the existence of a fraud on the
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