- 4 -
representative, withdraw all appeals and grievances."
Petitioner also agreed to the following:
all claims, demands, rights, causes of action, the
administrative remedies that [petitioner] has or may
have against [CWU], its successors and assigns, and
each and every one of the past or present employees,
students, agents, attorneys, or representatives of
[CWU], in their individual and official capacities
arising from or related to his employment are
satisfied, discharged and settled.
CWU agreed to pay petitioner $25,000, reduced by any
compensation benefits (other than medical benefits) received as a
result of his shoulder injury. On account of his shoulder
injury, petitioner received a benefit from the Washington State
Department of Labor and Industries in the amount of $3,604.80, of
which $2,926.80 represented a benefit for lost compensation and
$678 represented medical benefits. Accordingly, in March 1993,
CWU paid petitioner $22,073.20. Petitioner contends that the
payment from CWU is excludable from gross income under section
104(a)(2).
Section 104(a)(2) excludes from gross income "the amount of
any damages * * * received (whether by suit or agreement and
whether as lump sums or as periodic payments) on account of
personal injuries or sickness." The term “damages * * * received
(whether by suit or agreement * * *)” means an amount received
(other than workmen's compensation) through prosecution of a
legal suit or action based upon tort type rights, or through a
settlement agreement entered into in lieu of such prosecution.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011