- 7 -
and that the U.S. Supreme Court's decision in United States v.
Burke, supra, controls.
In Burke, the Court considered whether amounts received in
settlement of a claim under Title VII 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, the Court noted that the
statute offered only injunctions, back and front pay, and other
equitable relief. Id. at 238-239. As a result, the Court
concluded that Title VII did not redress tort type personal
injuries and consequently that settlement proceeds based on such
a claim are not excludable under section 104(a)(2).
Petitioner contends that remedies available to her under
other laws redressed tort type personal injuries, and that the
settlement was partially intended to settle these claims.
Petitioner emphasizes that the consent decree indicated that
State Farm was concerned about its liability under other laws and
that the settlement agreement provided that petitioner released
all claims she had against State Farm under Title VII and other
laws. Petitioner has failed, however, to establish the amount,
if any, attributable to claims under other laws. As a result,
petitioner has failed to prove that any part of the settlement
proceeds is excludable. See Getty v. Commissioner, 91 T.C. 160,
175-176 (1988), affd. on this issue, revd. on other issues 913
F.2d 1486 (9th Cir. 1990).
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