Deborah E. Clark - Page 3

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                  On June 1, 1979, a class action lawsuit, Kraszewski v. State                           
            Farm Gen. Ins. Co., was filed against State Farm in the U.S.                                 
            District Court for the Northern District of California.3  The                                
            class representatives alleged that State Farm had engaged in                                 
            statewide discrimination in California in the recruiting, hiring,                            
            and training of women for sales agent trainee positions in                                   
            violation of title VII of the Civil Rights Act of 1964 (CRA of                               
            1964), Pub. L. 88-352, 78 Stat. 241.  The representatives sought                             
            backpay, as well as injunctive and declaratory relief.                                       
                  The District Court bifurcated the litigation into a                                    
            liability and a remedy phase.  On April 29, 1985, the court ruled                            
            in the liability phase that State Farm was liable under title VII                            
            for classwide discrimination on the basis of gender.4  On July                               
            17, 1986, the court held that individual hearings were                                       
            appropriate to determine the relief for class members.  The court                            
            determined that class members were entitled to show that they                                
            were actual victims of discrimination as to any of the vacancies                             
            at State Farm which occurred during the period of liability and                              
            were filled by men.                                                                          



                  3On Sept. 9, 1981, the District Court for the Northern                                 
            District of California certified a class in Kraszewski to                                    
            maintain the action.  See Kraszewski v. State Farm Gen. Ins. Co.,                            
            27 Fair Empl. Prac. Cas. (BNA) 27 (N.D. Cal. 1981).                                          
                  4See Kraszewski v. State Farm Gen. Ins. Co., 38 Fair Empl.                             
            Prac. Cas. (BNA) 197 (N.D. Cal. 1985).                                                       




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