Joseph D. & Elizabeth M. Dunne - Page 10
- 10 -
payable on the settlement date. Mr. Dunne was also entitled to
$175,000 for the sale of his FRC stock on the settlement date.
The arbitrator confirmed that the paragraph governing the
transfer of FRC stock required Mr. Dunne to escrow the stock
certificates on the settlement date, and that the certificates
would be held in escrow until Mr. Dunne had received the money
owed to him. The arbitrator noted that there was no settlement
date at that point because no memorializing document had been
signed. He directed that the settlement date would be June 22,
None of the parties involved complied with the arbitration
award. On June 9, 1998, FRC and Mr. Marcus filed a complaint in
the Court of Common Pleas of Lucas County, Ohio, to confirm the
arbitration award. The complaint was removed to the U.S.
District Court for the Northern District of Ohio. On August 10,
1998, Mr. Dunne filed an answer and counterclaim in which he
stated that he was a 50-percent shareholder of FRC. On May 6,
1999, the District Court confirmed the arbitration award. All
parties involved appealed.
On September 1, 1999, petitioners jointly filed a Form 1040,
U.S. Individual Income Tax Return, for 1997. After an extension,
petitioners’ 1997 Form 1040 was due on August 15, 1998.
Petitioners attached a Form 8082, Notice of Inconsistent
Page: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Last modified: March 27, 2008