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of Ps. W declined to accept the settlements. On
Dec. 15, 2003, M called H to attempt to persuade H to
accept the settlements on behalf of Ps, without telling
H that M had already accepted both settlements on
behalf of Ps. H declined to accept the settlements.
Afterwards, through Dec. 17, 2003, M spoke separately
to W and H on a number of occasions in an attempt to
persuade either of them to accept the settlements.
Neither P ever did so. On Jan. 14, 2004, unbeknownst
to Ps, M caused to be filed with the Court a settlement
stipulation that showed Ps’ 1993 and 1994 Federal
income tax liability, as computed on the basis of the
settlements. On Jan. 27, 2004, the Court entered a
stipulated decision that reflected the amounts shown in
the settlement stipulation. In February 2004, Ps moved
the Court to vacate the stipulated decision and to set
aside the related stipulations of settlement. Ps
asserted in their motion that M was unauthorized to
agree to the settlements on their behalf.
Held: The Court shall grant Ps’ motion in that we
find that M was not authorized by Ps to agree to either
settlement on their behalf.
Michael D. Stewart, Ronald A. Feuerstein, Candace M. Van den
Bosch, and Gary H. Kuwada, for petitioners.1
Elliot H. Kajan, for third party in interest Dwight M.
Montgomery.
Karen Nicholson Sommers, for respondent.
1 Dwight M. Montgomery petitioned the Court on behalf of
petitioners and continued to represent them until he withdrew on
Apr. 9, 2004. Ronald A. Feuerstein entered the case on Feb. 25,
2004. Candace M. Van den Bosch and Michael D. Stewart entered
the case on Apr. 28, 2004. A. Lavar Taylor and Robert S.
Horowitz entered the case on June 9, 2004, and withdrew on
July 15, 2004. Gary H. Kuwada entered the case on June 22, 2004.
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