Richard D. Waters - Page 11




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          recovery of "overtime compensation, liquidated damages, attorney            
          fees and costs" under the Fair Labor Standards Act of 1938.                 
          Nowhere in the complaint or in the Settlement Agreement is there            
          any reference to or any indication that the recovery included               
          damages for racial discrimination.  Moreover, the record                    
          satisfies the Court that petitioner's claim to racial                       
          discrimination practices against him was not called to the                  
          attention of PayLess or its attorneys in connection with the                
          class action.  Since there was no claim made for such injury by             
          petitioner, the rhetorical question posed in Bagley v.                      
          Commissioner, supra, is that whatever the settlement was for, it            
          certainly was not for personal injuries attributable to racial              
          discrimination practices.  Petitioner's reliance on Rev. Rul.               
          1993-88, therefore, is misplaced.4  Moreover, the general                   
          language relied on by petitioner in the Settlement Agreement that           
          "all settlement proceeds are paid to plaintiffs on account of               
          personal injuries" is inconsistent with the other provisions of             
          the agreement that quite clearly indicate and establish that the            
          settlement was intended to satisfy the claims made in the class             


               4    The Court notes further that revenue rulings do not               
          have the force of law and are merely statements of the                      
          Commissioner's litigating and administrative position.  See Dixon           
          v. United States, 381 U.S. 68, 73 (1965); Stubbs, Overbeck &                
          Associates v. United States, 445 F.2d 1142, 1146-1147 (5th Cir.             
          1971).                                                                      






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