L.S. Vines - Page 9

                                        - 9 -                                         
          court proceedings.  Respondent contends, however:  (1) Petitioner           
          has failed to establish that he meets the net worth requirements            
          of 28 U.S.C. sec. 2412(d)(2)(B); (2) petitioner’s claimed                   
          attorney’s fees are not reasonable; (3) petitioner has failed to            
          substantiate his litigation costs; and (4) petitioner should not            
          be treated as the prevailing party because respondent’s position            
          was substantially justified.  Respondent also contends that                 
          petitioner is not entitled to recover litigation costs and                  
          attorney’s fees because petitioner recovered approximately $2.5             
          million in damages from his former accountant, Mr. Pearce, who              
          failed to advise petitioner of the section 475(f) election.                 
          Respondent contends that an award of costs and fees in the                  
          instant case is tantamount to an award of punitive damages                  
          against respondent because the $2.5 million that petitioner                 
          recovered from Mr. Pearce far exceeds the litigation costs and              
          fees sought by petitioner.2  Because we hold, for reasons stated            
          below, that respondent’s position was substantially justified, we           
          do not need to address the other issues remaining with respect to           
          the instant motion.3                                                        


               2We note that, in 2003, petitioner settled his claim against           
          Mr. Pearce for failing to advise petitioner about the                       
          availability of the sec. 475(f) election for approximately $2.5             
          million.  Petitioner also settled a claim against one of the                
          brokerage houses that liquidated petitioner’s trading account for           
          $1.75 million.                                                              
               3Although we do not decide whether petitioner meets the $2             
                                                             (continued...)           




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011