- 3 -
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." Petitioner ultimately
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 informal individual
hearings before a special master to determine whether each
claimant was entitled to damages and the amount of such damages.
In October of 1990, petitioner's hearing was held before a
special master who, on January 16, 1991, ruled that State Farm
had discriminated against petitioner. On January 28, 1991, State
Farm issued a $653,230 check payable to petitioner and her
attorney. Petitioner's attorney retained legal fees of $163,308,
and the $489,922 balance was paid to petitioner.
On her 1991 Federal income tax return, petitioner excluded
the $653,230 payment from her gross income. Respondent
determined that the entire amount should have been included in
petitioner's gross income. The petition in this case was filed
on December 28, 1995.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011