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payor may indicate a lack of intent to settle such a claim. See
Gajda v. Commissioner, T.C. Memo. 1997-345, affd. 158 F.3d 802
(5th Cir. 1998); Brennan v. Commissioner, T.C. Memo. 1997-317.
Here, intentional infliction of emotional distress, which
petitioner contends she suffered while employed by PSC, is
recognized as a tort under Oklahoma law. See Eddy v. Brown, 715
P.2d 74, 76 (Okla. 1986) (adopting the description of intentional
infliction of emotional distress set forth in Restatement, Torts
2d, sec. 46 (1977)). This Court has likewise acknowledged
infliction of emotional distress as a tortlike claim for purposes
of section 104(a)(2). See Massot v. Commissioner, supra; Gajda
v. Commissioner, supra; Brennan v. Commissioner, supra. We thus
are willing to assume for purposes of this litigation that
petitioner possessed a bona fide tort claim against PSC for
emotional distress experienced as a result of gender
discrimination. Therefore, in so assuming that petitioner had a
tort claim which could have provided the basis for a settlement,
we turn to the question of whether the payment she received was
actually made to settle such claim, to compensate petitioner for
personal injuries suffered as a result of the alleged tort.
B. On Account of Personal Injuries
As used in section 104(a)(2), personal injury encompasses
harms both tangible and intangible, both physical and
nonphysical. See Commissioner v. Schleier, 515 U.S. at 329 n.4;
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