Neil S. and Rita E. Hardin - Page 10

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          compromise settlement of any and all legal, evidentiary,                    
          discovery, and document production issues regarding Claim No.               
          624".5   Accordingly, we conclude that the settlement agreement             
          represented a compromise and settlement of petitioner's rights              
          pursuant to her claim against State Farm alleging discrimination6           
          under title VII.7                                                           
               Petitioners also argue that, in releasing all of her rights            
          against State Farm, petitioner's release included tort or tort              
          type rights.  We, however, conclude that petitioners have failed            
          to establish that the State Farm payment was attributable to a              
          claim based upon tort or tort type rights under laws other than             
          title VII.8  Consequently, petitioners have failed to prove that            
          any part of the State Farm payment is excludable from gross                 

          5    Claim No. 624 was the identification of petitioner's claim             
          against State Farm in the class action suit.                                
          6    We do not find applicable petitioners' citation of Rojo v.             
          Kliger, 52 Cal. 3d 65, 82, 801 P.2d 376, 383 (1990), in which the           
          California Supreme Court held that a claim under the California             
          Fair Employment and Housing Act "does not displace any causes of            
          action and remedies that are otherwise available to plaintiffs."            
          As discussed, supra, petitioner's claim was under title VII.                

          7    As petitioner's claim arose during 1975 and the class action           
          suit was filed during 1979, the amendments to title VII made by             
          sec. 102 of the Civil Rights Act of 1991, Pub. L. 102-166, 105              
          Stat. 1072-1074, do not apply.  Landgraf v. USI Film Prods., 511            
          U.S. 244 (1994).                                                            
          8    We note that, insofar as the State Farm payment was                    
          attributable to a claim under the Age Discrimination in                     
          Employment Act of 1967 (ADEA), "a recovery under the ADEA is not            
          one that is 'based upon tort or tort type rights.'"  Commissioner           
          v. Schleier, 515 U.S.    ,    , 115 S. Ct. 2159, 2167 (1995).               




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