Cheryl Denese Brewer - Page 9

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          to all members of the class who had been discriminated against and          
          ordered individual hearings.2  Kraszewski v. State Farm Gen. Ins.           
          Co., 38 Fair Empl. Prac. Cas. (BNA) 197 (N.D. Cal. 1985).   The             
          court did not limit relief to State Farm employees.                         
               The U.S. Supreme Court's decision in United States v. Burke,           
          supra, controls.  The issue in Burke was whether amounts received           
          in settlement of a title VII claim were excludable pursuant to              
          section 104(a)(2).  The Court analyzed title VII and held that it           
          did not provide for remedies to recompense claimants for tort type          
          personal injuries.  Rather, the Court noted that the statute offered        
          only injunctions, back and front pay, and other equitable relief.           
          Id. at 238-239.  Accordingly, the Court held that title VII did not         
          redress a tort type personal injury and consequently that settlement        
          proceeds based on such a claim are not excludable pursuant to               
          section 104(a)(2).                                                          
               Here, petitioner and State Farm entered into a settlement              
          agreement pursuant to which State Farm paid $202,877 to petitioner          
          for her release of a claim "arising out of or relating to any               
          alleged discriminatory, improper, or unlawful act or omission of            
          State Farm in connection with * * * recruitment, selection, hiring,         
          job assignment, job transfer, training, promotion, or termination".         
          In addition, the settlement agreement specifically stated that it           

               2    Although petitioner did not have a hearing to determine           
          whether she was entitled to damages, petitioner and State Farm              
          nevertheless entered into a settlement.                                     




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