Facts An auto dealer filed an erroneous criminal complaint against the taxpayer, Marlene. As a result she was falsely imprisoned for approximately 8 hours. Although the criminal charges against Marlene were expunged, and she did not suffer any physical injury, she endured mental distress during the ordeal that required the intervention of a psychologist. Marlene paid $5,000.00 for the counseling services rendered by the psychologist. Marlene then proceeded to file a lawsuit against the auto dealer for malicious prosecution. In the end, a settlement of $100,000.00 was awarded to Marlene of which $30,000.00 was allocated to the attorney in adherence to the contract stipulation of 30% of any proceeds. The attorney issues a check of $70,000.00 …show more content…
The psychologist visits must be itemized on Form 1040, Schedule A. The proceeds Marlene received from the outcome of the lawsuit will be included as part of her taxable gross income. As a general rule, the proceeds received from most personal injury claims are not taxable under federal or state law. It does not matter whether you settled the case before or after filing a lawsuit in court. Federal tax law excludes damages received as a result of personal physical injuries or physical sickness from a taxpayer’s gross income. This means typical personal injury damages that are meant to compensate the claimant for things like lost wages, medical bills, emotional distress, pain and suffering, and attorney fees are not taxable as long as they are related to a personal injury or a physical sickness. A physical sickness means a claim for an illness. Damages other than punitive damages that are received on account of personal physical injury or physical sickness are excluded from gross income, whether they are received as the result of a lawsuit or the settlement of a lawsuit, and as lump sums or as periodic payments. Code Sec. 104(a)(2). Damages means an amount received through prosecution of a lawsuit or through
2. Facts: Plaintiff Irene George (P) is filing suit against Defendant Jordan Marsh Co. (D) for mental anguish and emotional distress which resulted in two heart attacks. D sold goods on credit to P’s emancipated son, who purchased them on P’s account. D alleged that P stated in writing that she would pay the debts (which she did not incur), even though it is understood that P did not make this guarantee. D then attempted to intimidate P into paying these debts she did not owe by calling her at late hours, by mailing her bills, by sending her letters stating late charges were being added on and that her credit had been revoked, and by numerous other tactics. P suffered great
case brief---Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract provided that Gregory would provide Wessel with a 15 minute monologue for his upcoming appearance on the comedy hour and Wessel will pay $250 to Gregory. All performers could make $500 per appearance on the comedy hour. and when Wessel was scheduled to aper on the comedy hour, Gregory informed him that he was unable to provide the monologue, because last time Wessel was asked to make special guest appearances at three local comedy clubs performance during the comedy hour. and Wessel bought lawsuit to Gregory for beach of contract and request damages of $1250.
On or about June 25, 2016, the Plaintiff’s automobile, a 2006 Lincoln LS, was stolen from her and burned to the point where the property damage to the automobile was determined to be a total loss. At the time, the Plaintiff was covered by an automobile insurance police with the
Upon receipt of the vehicle, Mr. Meyer found the vehicle to have paint damages in several areas of the car, along with the hood being misaligned, the trunk unable to open, and the vehicle unable to crank. Mr. Meyer requested a full refund of the purchase price and when Mr. Alphin refused, he filed a claim in district court in Nebraska. Mr. Alphin was served notice to appear in court and he refused; therefore, the Nebraska court entered a default judgment for the amount of $8.942.30 against Mr. Alphin, defendant for Race City Classics, LLC. The amount awarded was for the necessary cost of repair alleged by Mr. Meyer, plaintiff. Mr. Meyer then filed a “Docketing of Foreign Judgment” and a “Notice of Filing for Judgment” in Iredell County Superior Court. This is the county and court in North Carolina where Race City Classics, LLC resides. Upon notification of the filings,
While driving Curtis Campbell the defendant, chose to pass six vans on a two-lane highway. Another driver was Todd Ospital, who was approaching from the other side. Moreover, to avoid a head on collision with the defendant, Ospital swerved over into the shoulder of the highway lost control of his vehicle and crashed in to driver Robert Slusher. In result Ospital was killed, and Slusher was permanently disabled, meanwhile the Campbell’s escape without a scratch. Being charged for wrongful death the defendant believed he was not at fault, however evidence differed his claim. The Campbell’s insurance company decided to deny the offer made by Slusher & Ospital estate for a settlement of “50,000 ($25,000 per claimant)”. (Oyez) Which lead the defendant to be found completely at fault, and judgment went back up to up to $185,849.( Cornell Law). Three years later the defendant, Slusher, and made an agreement that they would not speak against Mr. Campbell; and in exchange the defendant would sue the insurance
Conclusion: Thanks to the landmark case, Marrita Murphy and Daniel J. Leveille, Appellants v. Internal Revenue Service and United States of America, Appellees, there is now no misunderstanding that awards received for damages to personal and professional reputation and mental suffering are included in gross income and are therefore taxable under 26 U.S.C. § 104(a)(2). This determines that because Murray did not suffer personal physical injuries and since gross income as defined by Code Sec. 61 includes compensatory damages for nonphysical injuries, such as those awarded to Murray, his award is in fact taxable [2007-2 U.S.T.C. ¶50,531, (Jul. 3, 2007)].
Procedural issue: A jury ultimately found that Philip Morris was negligent and that Philip Morris had engaged deceit. It awarded compensatory damages of
The objective of this book was to teach the plaintiff or pro se' litigant, to assess their case before the taking it to court. If it is strong, they should convey it in a well-pleaded petition, with unwavering verbal testimony, able to produce eye witness(s). As well as, substantiate the claim with tangible or material evidence and compare their case with similar cases using established case laws. If they feel that the case is strong should prepare and write a effective pleading . Similar, justice is not for the rich. In accordance with the law, money should prevent the victim from seeking justice or restitution. Fortunately, the lack of court fee should not be an issue. Under 28 U.S.C. § 1915, persons that are of low or no income are granted
If I had the opportunity, I would try to cut an honest and fair deal with the car dealership. Otherwise, I would not take the van because even though the orphanage needs it, it would still be a fraud. One of the pros Misrepresentation is that can help business to grow significantly, but it would do this by hurting investors or consumers, which is contradictory because If a company utilize misrepresentation as a tactic to help its business, there are definitely more cons than pros about it.
After an argument with his wife, Russell Pelo bought a shotgun and made threats of self-harm. In accordance with state law, he was detained in a hospital psychiatric unit for examination after a federal judge found him seriously mentally impaired. After Pelo was released, he refused to pay the hospital bill or allow his health insurer to pay it. When sued for the hospital bill, Pelo said he should not have to pay because he did not want to be hospitalized. Must he pay for services he did not want? Justify your
I further acknowledge that a settlement offer of $2500 is good because MSHA normally does not want settle in this matter, so that is a plus.
I reviewed this file on 07/14/17 in preparation for a hearing coming up on 07/19/17. It is on for a fraud trial and we are going to take testimony from the owner of the company, Dean West as he took some photographs which he will authenticate and give his testimony about seeing the claimant working. He saw him weed whacking in front of a motel on two separate occasion. He saw him working with another employee of Windustrial. We also asked for an investigator and we 2 disks worth of surveillance.
Q. Sue Smasher was a promising young tennis player. In July 1991, when she was 16, she entered into the separate agreements, both of which were to run until July 1993. No. 1, with Lew Lobb, a noted tennis coach whereby he undertook to organize her training and decide which tournaments she should play in. In return, Sue agreed to act on Lew’s advice and pay him 20% of her winnings from tournaments. No. 2, with Drive Power Ltd, whereby Sue promised to use their sports equipment in return for Drive Power paying all her travel expenses.
Harriet runs a professional cleaning service whereby she requires a specific vacuum. Thus Harriet orders an industrial strength vacuum cleaner at the cost of £5000 from Super Suckers Ltd. However the vacuum 's power supply which is required to operate the vacuum is missing therefore making it unusable. Harriet therefore was unable to fulfil a contract to clean a client 's (Sully) house, which had substantial consequences. Additionally Harriet 's car was damaged on the afternoon she should have been cleaning the client 's house. Due to Harriet consequentially being unable to clean Sully’s house he sold it for £60,000 less than expected. He therefore sues Harriet for the loss of the £60,000.
In the civil law case of Connie, sole proprietor of The Cone Lady, versus The Creamery, Hal, sole proprietor of The Creamery, Darlene, wife of Hal and accountant of The Creamery, Guy, previously managed The Creamery, and Fred, currently manages The Creamery. Case involves The Cone Lady who makes and distributes ice cream cones and The Creamery who sales ice cream among other novelty items. The reason The Cone Lady is standing to sue is for nonpayment of the 100 dozen delivered cones ordered by The Creamery on a Wednesday in March. In this case I, Judge Wapner, judicially decide that Connie, the plaintiff and owner of The Cone Lady, receive full payment of the 100 dozen cones that were ordered by Fred in the month