Lars E. Fredrickson, Jr., and Donna J. Fredrickson - Page 7

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          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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