- 8 -
future lost wages, as well as punitive damages. However, as in
the settlement agreement, there is no allocation of monetary
damages among the claims. The petition merely claims damages "in
excess of $10,000.00".
We must therefore look to the record before us and examine
all of the facts and circumstances surrounding the settlement
agreement. Stocks v. Commissioner, 98 T.C. 1 (1992). The
allocation of the settlement proceeds is a question of fact.
Knuckles v. Commissioner, supra at 613. Based upon our
examination of the record and upon due consideration, we allocate
$13,500 to the mental distress claim and $13,500 to the punitive
damages claim for the following reasons.
Petitioner's attorney in the wrongful termination action and
settlement, Earl Remmel, testified that during the negotiations
with NLCA's defense counsel there was no discussion of past and
future lost wages, mental distress, or punitive damages.
However, Mr. Remmel further testified that under the
circumstances of her termination, petitioner had a strong case
for mental distress with the likelihood of punitive damages. He
also stated that her opportunity for recovery for future wages
was not that good because of her age and health condition. In
addition, petitioner had already been paid for the time she
worked at NLCA plus 1-month's severance. Although not discussed
during settlement negotiations, these factors were no doubt the
same ones which motivated NLCA to settle the case.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011