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estimated full Consent Decree value of her claim, to
release her claims against State Farm. * * *
* * * * * * *
c. Incentive Cash for Acceptance Rate Above 90%:
The Incentive Cash will be $1,800.00 per claimant for
each full percentage point by which the Acceptance Rate
* * * exceeds 90%. * * *
* * * * * * *
e. Attorney's Fees: The payments State Farm
is offering to [petitioner] * * * include her
attorneys' fees and costs * * *. That is, [petitioner]
* * * will have to pay her attorneys' fees * * * out of
the payment State Farm makes to her. * * *
Pursuant to the terms of the settlement, State Farm issued
petitioner and her attorneys a check in the amount of
$283,394.56. Petitioner's attorneys retained legal fees and
costs of $57,897.87, and the remaining $225,496.69 was paid to
petitioner.
At this time, petitioner's attorneys provided her and the
other class members with a tax opinion letter, which advised that
the Supreme Court had granted certiorari in United States v.
Burke, 502 U.S. 806 (1991), in order to decide whether back wages
received in litigation or settlement of title VII claims were
excludable from gross income. The opinion letter stated: "If
the Supreme Court determines that back wages awarded in
settlement of title VII claims are taxable, a claimant must
include the entire amount of her settlement in income, without
offset for attorneys fees."
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Last modified: May 25, 2011