Opinion
26869-21 26872-21 26874-21 26877-21
06-28-2023
ESTATE OF ROMAN J. FINNEGAN, DECEASED, KEVIN C. TANKERSLEY, PERSONAL REPRESENTATIVE, & LYNETTE FINNEGAN, ET AL., Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Joseph W. Nega Judge
These cases are calendared for trial at the special session of the Court scheduled to commence on August 14, 2023, in Indianapolis, Indiana. On April 12, 2023, respondent filed a motion for summary judgment as to docket numbers 26872-21, 26874-21, and 26877-21 and partial summary judgment as to docket number 26869-21 with respect to Lynnette Finnegan and filed a declaration in support of the motion. On May 16, 2023, respondent filed a motion for partial summary judgment as to docket number 26869-21 with respect to the Estate of Roman J. Finnegan and filed a declaration in support of the motion. On June 5, 2023, petitioners filed a response to respondent's motion for summary judgment, and on June 16, 2023, petitioners filed a response to respondent's motion for partial summary judgment. In the responses petitioners also cross-moved for summary judgment.
Respondent seeks a determination that petitioners' settlement proceeds are not excludible under I.R.C. § 104(a)(2) and must be included in gross income. Petitioners contend that the damages initially awarded by a jury in their federal civil rights case were received on account of their post-traumatic stress disorder (PTSD), a physical injury or physical sickness of the brain, and therefore the settlement proceeds are excluded from gross income under I.R.C. § 104(a)(2).
The standard for granting summary judgment requires no dispute of material facts and that all uncertain facts be assumed in non-movant's favor.
Petitioners purport to have made a cross motion for summary judgment in their responses to respondent's motions, but they have not complied with the Court's rules requiring a separate document. See Rule 54(b). In any event, petitioners are not entitled to a determination in their favor. On the currently-constituted record before us, we find that genuine disputes of material fact exist between the parties. At this stage, neither party has conclusively established that the entirety of the settlement proceeds was-or was not-awarded to compensate petitioners for physical injuries or physical sickness, and thus neither party is entitled to judgment as a matter of law.
That being so, it is
ORDERED that respondent's motion for summary judgment, filed April 12, 2023, is denied. It is further
ORDERED that respondent's motion for partial summary judgment, filed May 16, 2023, is denied.
The cases remain set for trial on August 14, 2023, as previously scheduled.