- 9 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011