Mediation Case Law Teaching Videos

Emerson v. Commissioner of Internal Revenue, No. 5877-00, 2003 WL 1392574 (U.S. Tax Ct., March 20, 2003)

James Coben, Hamline University

Play time: 4:00 minutes

Affirming IRS refusal to consider portion of mediated settlement of contract/ intellectual property dispute non-taxable compensation for injuries or personal illness, where there was no mention during mediation of a claim for personal injuries, other than mediator's suggestion, subsequently acted on by the parties, to "add a personal injury claim to the suit as a vehicle to reach settlement"; rejecting IRS accuracy-related penalty for improperly excluding settlement proceeds as received on account of physical injury or sickness, since taxpayer had relied to his detriment on the suggestion of the mediator and his own attorney to include a claim for personal injury.