Jacqueline Medina - Page 5

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          and fair dealing; (4) wrongful discharge; (5) intentional                   
          infliction of emotional distress; and (6) retaliatory discharge.            
          Petitioner sought backpay along with related benefits and $2                
          million compensatory damages for pain and suffering and other               
          related torts, plus $6 million for punitive damages.                        
               Petitioner and Liberty were able to negotiate a settlement             
          of the lawsuit.  They each signed a settlement agreement                    
          (settlement agreement) in which Liberty agreed to pay petitioner            
          $70,000.  Paragraph 1 of the settlement agreement specified that            
          Liberty would pay the $70,000 as follows:                                   
               (a) the sum of $12,000.00 (less applicable withholdings                
               and deductions) . . . [to] be reflected on an IRS Form                 
               W-2; and (b) the sum of $58,000.00 . . . [to] be                       
               reflected on IRS Form 1099.                                            
               Paragraph 2(c) of the settlement agreement specified that              
          petitioner released Liberty from “all claims for wrongful                   
          discharge, breach of contract, fraud, misrepresentation,                    
          defamation, torts, or any other claims in any way related to                
          Plaintiff’s employment with and termination from Liberty Travel.”           
          In addition, paragraph 11 of the settlement agreement stated that           
          the agreement was the result of a compromise and was made solely            
          to avoid the expenses of litigation.  Liberty expressly denied              
          any liability to or wrongdoing against petitioner.                          










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