Johann Keil and Catherine Keil - Page 2

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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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