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discouraged in their efforts to obtain the entry level sales
position." One year later, the District Court ordered hearings
to determine individual liability and damages.
The District Court referred the Lawsuit to Judge Eugene
Lynch as mediator. After September 24, 1991, under Judge Lynch,
State Farm and class action counsel started negotiations to
attempt to settle the claims of individual litigants. As a
result of the negotiations, a Master Settlement Agreement was
reached on January 17, 1992. The agreement provided a formula
for the computation of damages that State Farm would offer to
each claimant, who was free to accept or reject the offer.
On or around January 17, 1992, the District Court provided
petitioner with a document entitled "Communication of State
Farm's Settlement Offer", accompanied by a "Summary of Terms of
State Farm's Settlement Offer", which had been reviewed and
approved by Judge Lynch. State Farm offered petitioner $204,523
to release her claims against State Farm. The offer was
conditioned upon acceptance of State Farm's offers by at least
87.5 percent of the 821 final claimants represented by class
action counsel to whom offers of that type had been extended.
The $204,523 represented 37 percent of the full Consent Decree
value of petitioner's claim.
The offer also provided that petitioner would share in any
"incentive cash" payable. This was an additional amount computed
under a formula based upon the number of percentage points by
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Last modified: May 25, 2011