Jerry and Patricia A. Dixon, et al. - Page 86

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               Respondent’s 11-page motion for entry of decision, with a              
          15-page supporting memorandum, disclosed to the Court the facts             
          that had been discovered in respondent’s investigation.                     
          Respondent informed the Court that, before the test case trial,             
          Sims and McWade had agreed to settle the Thompson cases by                  
          reducing the Thompsons’ deficiencies in amounts sufficient to               
          compensate the Thompsons for their projected attorney’s fees.  As           
          respondent explained to the Court, Sims and McWade had agreed               
          with DeCastro that                                                          
               All settlement refunds in excess of the amounts                        
               provided by the December 1986 agreement would go                       
               ultimately to the benefit of Mr. DeCastro for payment                  
               of his legal fees and costs.  Mr. DeCastro would be                    
               paid solely from amounts refunded by the Service to                    
               Thompson.  * * *  This “New Agreement”, in sum and                     
               substance, if not explicitly, was designed, and                        
               constituted an agreement by Messrs. Sims and McWade to                 
               pay Mr. DeCastro’s legal fees and expenses.22                          


          21(...continued)                                                            
          indicates that Chicoine and Hallet’s motion to suppress evidence            
          was pending when McWade offered the 20-percent reduction                    
          settlement to DeCastro in December 1986.  Although McWade may               
          have known of Chicoine and Hallet’s intent to file such a motion,           
          the motion, in the form of a motion for leave to amend petition,            
          was not filed until Jan. 12, 1987, after Chicoine and Hallett had           
          entered their appearances.  Any error in this regard, however, is           
          immaterial, in view of our disposition of this matter.                      
          22On brief, petitioners question the assertions in                          
          respondent’s motion that all settlement refunds “in excess of the           
          amounts provided in the December 1986 agreement” would go to                
          DeCastro.  This assertion, however, appears to have reflected               
          respondent’s understanding at the time.  Once again, in view of             
          our disposition of this matter, any error in this respect is                
          irrelevant.                                                                 





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