Jerry and Patricia A. Dixon, et al. - Page 62

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          motions to withdraw as counsel in the Thompsons’ cases, which the           
          Court granted.                                                              
               In ruling on a subsequent motion, Judge Goffe observed that            
          there could be a conflict of interest if Seery represented both             
          petitioners and Kersting.  Seery subsequently filed motions to              
          withdraw as counsel in the Kersting project cases (both test                
          cases and nontest cases), citing concerns about a possible                  
          conflict of interest.  The Court granted Seery’s motions in                 
          November 1986.                                                              
               C.   The Thompsons Engage DeCastro, Who Settles                        
                    Their Cases                                                       
               On or about November 15, 1986, the Thompsons retained                  
          attorney Luis DeCastro (DeCastro), who was also a certified                 
          public accountant, to settle their Kersting tax issues.  Mr.                
          Thompson retained DeCastro to resolve all the Thompsons’ Kersting           
          tax years, not only the 1979-1981 years docketed in the Tax                 
          Court.  The Thompsons provided DeCastro with tax records for all            
          those years.  The retainer agreement between the Thompsons and              
          DeCastro provided for a $5,000 fee, which covered only efforts to           
          negotiate a settlement; it did not cover preparation for and                
          conduct of a trial.  None of the other petitioners in the                   
          Kersting project, whether test case petitioners or piggybackers,            
          incurred any attorney’s fees in connection with the preparation             
          and trial of the test cases.  Kersting paid all such fees.                  






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