William A and Ann M. Jacobs - Page 11




                                       - 11 -                                         
          of the release in the settlement and the description of the                 
          cause of action in the pretrial order.  The language in the                 
          release does not indicate that the clause at issue modifies                 
          only the last type of relief in the list given.  If that had                
          been the intention, the authors could have written it as                    
          petitioners rewrote it in their briefs, with numbers clearly                
          delineating the types of relief and applying the modifying                  
          clause only to the last type of relief.  The pretrial order                 
          description of the settlement agreement also belies                         
          petitioners’ interpretation.  The release is described as a                 
          release of “any and all claims Plaintiffs have made or could                
          have made arising out of any and all known or unknown economic              
          losses or damages compensable under the FLSA”.  This language               
          clearly excludes from the release any claims for noneconomic                
          injuries or for any claims for losses or damages arising out of             
          non-FLSA causes of action.                                                  
                Petitioners testified that they understood the release to             
          cover all claims against the State of Kansas, including any                 
          claims for the medical conditions they contend resulted from                
          their employment with the State.  Although the belief of the                
          payee is relevant to the inquiry, the character of the                      
          settlement payment hinges ultimately on the dominant reason of              
          the payor in making that payment.  See Agar v. Commissioner,                
          290 F.2d 283, 284 (2d Cir. 1961), affg. T.C. Memo. 1960-21;                 






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011