Lars E. Fredrickson, Jr., and Donna J. Fredrickson - Page 3

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               On April 29, 1985, the District Court ruled in the liability           
          phase that State Farm was liable under Title VII for classwide              
          discrimination on the basis of sex.  Specifically, it ruled that            
          women who attempted to become trainee agents were "lied to,                 
          misinformed, and discouraged in their efforts to obtain the entry           
          level sales position."  The court found State Farm liable with              
          respect to "all female applicants and deterred applicants who, at           
          any time since July 5, 1974, have been, are, or will be denied              
          recruitment, selection and/or hire as trainee agents by defendant           
          companies within the State of California."                                  
               On May 1, 1987, Donna Fredrickson (petitioner) applied to              
          become a State Farm trainee agent.  State Farm rejected her                 
          application and appointed a male applicant.  Petitioner                     
          subsequently joined the class action suit against State Farm.               
          The parties to the class action subsequently reached an agreement           
          in a consent decree as to the remedy phase of the litigation.               
          The consent decree provided for individual hearings to determine            
          each claimant's entitlement to damages and the amount of such               
               Petitioner ultimately prevailed in her claim against State             
          Farm.  In February of 1992, petitioner and State Farm entered               
          into a settlement agreement entitled "Settlement Agreement and              
          General Release".  That agreement provided in relevant part:                
               The approximate full value of [petitioner's] claim                     
               under the Consent Decree damage formula as of February                 
               1, 1992, is $173,057.00, which represents back pay as a                

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