FACTS:

Maria Zora is a wealthy individual whose portfolio is professionally managed. Three years ago, after noticing a series of similar and unprofitable buy/sell orders for stocks held in the inventory of her investment advisor, she sued the advisor for mismanagement of her portfolio. This year, the case was settled out of court when the advisor agreed to pay her $300,000. The payment represented the decline in the value of Maria's stock portfolio attributable to realized trading losses and excessive commissions. Her legal fees for the lawsuit totaled $90,000. These fees were not contingent on the outcome of the settlement. They were, however, deducted directly from the settlement proceeds received by Maria.

Because the settlement was made with respect to capital assets (i.e., her stock portfolio), Maria is sure that she can report it as a $300,000 long-term capital gain (rather than ordinary income). She is less certain, however, about the treatment of the legal fees, particularly in light of the recent repeal of all miscellaneous itemized deductions subject to the 2 percent AGI floor.

1.Has the judiciary ruled on any factually similar cases? If so, provide the citation and discuss its similarity