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told the EEOC that Ivy Tech required her to do filing despite her
doctors’ orders. On a date not stated in the record, petitioner
had surgery to correct her carpal tunnel syndrome. Shortly after
petitioner returned to work, she tripped over some boxes at her
workplace, fell, and injured her back. She received physical
therapy for the injury. Petitioner made worker’s compensation
claims for her carpal tunnel and back injuries. Petitioner was
hospitalized for 2 to 3 weeks for depression in March 2002.
D. Settlement of Petitioner’s Claims and Tax Treatment of It
Petitioner signed a document entitled Settlement Agreement
and Release on March 21, 2002, which included the following:
In consideration of the release and all of the
promises and representations made by Bond in this
Agreement, the College will allow Bond to resign,
effective March 20, 2002 and pay to Bond the total sum
of [$25,000]. The College will issue an IRS Form 1099
to Bond reflecting the payment set forth above in this
paragraph 1.
* * * * * * *
The parties further agree that the College * * * will
not authorize any of its representatives or legal
agents to discuss this Agreement or the circumstances
surrounding its making with anyone outside the College,
unless required to do so by law, nor will The College
authorize any of its representatives or legal agents to
make any disparaging remarks or comments to any other
person and/or entity about Bond.
In the settlement agreement, petitioner released Ivy Tech
from all claims except her pending claims under the Indiana
worker’s compensation law, for claims due to injuries which
occurred before the date of the agreement. The settlement
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