E. Pauline Barnes - Page 11

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          be received "by reason of" or "because of" the personal injuries.           
          Id.  117 S. Ct. 452, 454-455.                                               
               The Tenth Circuit has also had the opportunity to examine              
          the meaning of the phrase "on account of".  Brabson v. United               
          States, 73 F.3d 1040 (10th Cir. 1996); O'Gilvie v. United States,           
          66 F.3d 1550 (10th Cir. 1995), affd. 519 U.S. ___, 117 S. Ct. 452           
          (1996).  In Brabson, the Tenth Circuit held that an award of                
          prejudgment interest was not directly linked to the underlying              
          personal injury and thus not excludable under section 104(a)(2).            
          Brabson v. United States, 73 F.3d at 1047.  Rather, the Court               
          found that compensation received for the lost time value of money           
          is caused by the delay in obtaining judgment.  Id.  It reasoned             
          that time is the relevant factor in calculating the amount of               
          damages for prejudgment interest, not the injury itself.  Id.               
               Thus the phrase "on account of" requires a strong causal               
          connection between the personal injury sustained and the                    
          compensation received.  O'Gilvie v. United States, supra; Brabson           
          v. United States, supra at 1046-1047 (citing Schleier, 515 U.S.             
          ___, 115 S. Ct. at 2164).  We find that petitioner's mental                 
          distress claim satisfies this requirement.  Her wrongful                    
          termination directly caused her mental distress for which                   
          Oklahoma law allows a recovery in tort.  The relevant factor for            
          calculating damages for mental distress is the injury itself.               
          Since this type of intangible harm may constitute a personal                
          injury, Commissioner v. Schleier, 515 U.S. at ___ n.4, 115 S. Ct.           

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