Steven Arnold Diem - Page 4

                                        - 3 -                                         

               Petitioner initially applied for Industrial Disability                 
          Retirement Benefits from the city of San Francisco.  Petitioner             
          was approved for benefits under this program.  The parties agree            
          that the benefits under this program were equivalent to workmen’s           
          compensation benefits, and, accordingly, such benefits would not            
          constitute gross income since petitioner’s disabling condition              
          was sustained within the scope of and in the course of his                  
          employment.  Sec. 104(a)(1).  However, petitioner never received            
          any benefits under the Industrial Disability Retirement Benefits            
          program.  Petitioner’s award had been made by the American                  
          Arbitration Association.  Before any benefits were paid to him,             
          the city of San Francisco, through its general counsel, refused             
          to honor the determination and threatened to challenge the award            
          in court.  Petitioner was represented by counsel, and the two had           
          several conferences with officials of the city regarding the                
          matter.  In that discourse, the representatives of the city of              
          San Francisco represented to petitioner and his attorney that, if           
          petitioner instead chose a “nonindustrial” disability retirement,           
          the city would not oppose such an award.  Petitioner received an            
          assurance by the city, which was attested to by a representative            
          of the IRS who was present at one of the conferences, that the              
          benefits from a nonindustrial disability retirement program would           
          not constitute gross income.  The benefits under the                        
          nonindustrial disability program, however, were based on age and            





Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011