- 11 - check to Mrs. Campbell for the appropriate amount of backpay and interest on the backpay. There is no evidence in the record that Mrs. Campbell alleged to OTS or to the MSPB that she suffered any personal injuries or sickness as a result of OTS’s violation of the RIF regulations in effecting her demotion, nor is there any evidence that the MSPB awarded her damages attributable to such personal injuries or sickness. Accordingly, we cannot say that the MSPB awarded Mrs. Campbell backpay and interest thereon “by reason of, or because of, * * * personal injuries.” O’Gilvie v. United States, supra at 83. We recognize that, in some cases, damages measured by lost wages can satisfy the second prong of the test in Commissioner v. Schleier, supra, because they are awarded “on account of” personal injuries or sickness. For example, if a taxpayer was out of work for a time as a direct result of injuries, the economic damages received to replace the wages lost during that time would be excludable. Commissioner v. Schleier, supra at 329-331. This, however, is not the case for Mrs. Campbell. The MSPB did not compensate Mrs. Campbell for wages she lost as a result of missing work due to any personal injuries or sickness. Rather, the award of backpay and interest on backpay ordered by the MSPB replaced the pay and benefits Mrs. Campbell lost due to her demotion without the benefit of the RIF regulations. As such, the award of backpay and interest on backpay was notPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 NextLast modified: November 10, 2007