John W. Banks, III - Page 14




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          before the enactment and effective date of the Civil Rights Act             
          of 1991, Pub. L. 102-166, 105 Stat. 1071.  As to pre-1991 title             
          VII, the Supreme Court has concluded:                                       
               we cannot say that a statute such as Title VII, whose                  
               sole remedial focus is the award of back wages,                        
               redresses a tort-like personal injury within the                       
               meaning of � 104(a)(2) and the applicable regulations.                 
                    Accordingly, we hold that the backpay awards                      
               received by respondents in settlement of their Title                   
               VII claims are not excludable from gross income as                     
               “damages received ... on account of personal injuries”                 
               under � 104(a)(2). [United States v. Burke, 504 U.S.                   
               229, 241-242; fn. refs. omitted.]                                      

               On the basis of United States v. Burke, we hold that none of           
          the settlement proceeds attributable to petitioner’s pre-1991               
          title VII claim are excludable from income pursuant to section              
          104(a)(2).                                                                  
               We turn next to the portion (if any) of the settlement                 
          amount that is attributable to petitioner’s remaining claims                
          under 42 U.S.C. secs. 1981 and 1983 (1986).                                 
               The Supreme Court in United States v. Burke, supra at 240,             
          noted: “Rev. Stat. � 1977, 42 U.S.C. � 1981, permits victims of             
          race-based employment discrimination to obtain a jury trial at              
          which ‘both equitable and legal relief, including compensatory              
          and, under certain  circumstances, punitive damages’ may be                 
          awarded.”  The court went on to say unlike title VII actions such           
          actions were tortlike.                                                      








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