Robert W. Wood (Robert W. Wood, P.C., San Francisco) has published Recent Damage Awards Decisions, also available on the Tax Analysts web site as Doc 2005-18117, 2005 TNT 169-15.  Here is the Introduction:

There have been several recent decisions involving various aspects of litigation recoveries. The recent decisions seem to fall into two areas: § 104 and the continuing debate over the tax treatment of contingent attorney fees. The former represents a seemingly endless stream of authority that attempts to interpret a code section that has had no regulatory attention since long before its statutory overhaul in 1996. The latter issue — the tax treatment of attorney fees — might have been solved by the Supreme Court’s Banks decision this January. However, the Supreme Court left open certain questions that have proven to be nettlesome.