Charles Leonard Braden and Joice Stieber Braden - Page 5

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             State Farm’s breach of contract.”  Respondent argues:                    
             “payments made in settlement of breach of contract suits                 
             are specifically excluded from the definition of damages                 
             which might qualify for exclusion under the provisions of                
             I.R.C. sec. 104(a)(2).”  Thus, according to respondent,                  
             “none of the payments made in settlement of Campbell v.                  
             State Farm are [sic] excludable from gross income under                  
             section 104(a)(2).”                                                      
                  Respondent’s motion for summary judgment explains                   
             that                                                                     
                  Campbell v. State Farm was a class action lawsuit                   
                  in which it was alleged that State Farm breached                    
                  its insurance contracts with policyholders by                       
                  failing to pay Uninsured Motorist/Underinsured                      
                  Motorist (UM/UIM) benefits under more than one                      
                  insurance policy purchased from State Farm on                       
                  different vehicles owned by the individuals                         
                  involved, in a practice referred to as “policy                      
                  stacking.”                                                          

             We note that the complaint filed in Campbell v. State Farm               
             had asserted that “Defendant State Farm’s refusal to allow               
             Plaintiff to ‘stack’ multiple uninsured and/or underinsured              
             motorist coverages provided by State Farm policies                       
             constitutes a breach of contract.”                                       
                  Respondent’s motion does not rely on the settlement                 
             agreement that was entered into by the parties to Campbell               
             v. State Farm.  Respondent’s motion refers to a document                 
             entitled “Notice of Class Action, Proposed Settlement,                   





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