Deborah E. Clark - Page 8

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            that title VII is the basis for the underlying claim.  The nature                            
            of petitioner's claim is the same as that articulated in the                                 
            complaint filed by the Kraszewski class representatives, which                               
            alleged that State Farm had engaged in statewide discrimination                              
            in the recruiting, hiring, and training of women for sales agent                             
            trainee positions in violation of title VII.  The plaintiffs                                 
            sought backpay and injunctive and declaratory relief.  In                                    
            Kraszewski v. State Farm Gen. Ins. Co., 38 Fair Empl. Prac. Cas.                             
            (BNA) 197 (N.D. Cal. 1985), the District Court ruled that State                              
            Farm was liable under title VII to all members of the class who                              
            had been discriminated against and ordered individual hearings.                              
                  Our decision is controlled by the Supreme Court's holding in                           
            United States v. Burke, supra.  In Burke, the Court considered                               
            whether amounts received in settlement of a claim under title VII                            
            of the CRA of 1964 were excludable under section 104(a)(2).  The                             
            Court analyzed title VII and concluded that it did not provide                               
            for remedies to recompense claimants for tort type personal                                  
            injuries.  Instead, as the Court noted, title VII limited the                                
            available remedies to backpay, injunctions, and other equitable                              
            relief.7  Id. at 238.  As a result, the Court concluded that                                 

                  7The Supreme Court also observed that some courts have                                 
            permitted tit. VII claimants under certain circumstances to                                  
            recover front pay or future lost earnings.  United States v.                                 
            Burke, 504 U.S. 229, 239 n.9 (1992); see also Shore v. Federal                               
            Express Corp., 777 F.2d 1155, 1158-1160 (6th Cir. 1985).                                     
            Petitioner's settlement proceeds in the instant case included a                              
                                                                           (continued...)                




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