Ann Murray v. National Aeronautics and Space Administration

Summary

The Merit Systems Protection Board held that, in a case involving disability discrimination, it may award pecuniary compensatory damages for proven adverse tax consequences resulting from a lump-sum back pay award. The Board affirmed an award of $22,000 in nonpecuniary compensatory damages and remanded for evidence and further adjudication regarding the appellant’s actual increased tax liability.

Holdings

1. In a case involving a finding that a federal agency committed prohibited discrimination under Title VII or the Rehabilitation Act, the Board may award as pecuniary compensatory damages payment for proven adverse tax consequences caused by receipt of a lump-sum back pay award.
2. An appellant seeking tax-related pecuniary compensatory damages must prove the amount of increased tax liability actually caused by receiving the lump-sum back pay award; because Murray had not yet submitted that evidence, the issue required remand.
3. The $22,000 award of nonpecuniary compensatory damages was appropriate and should be affirmed.

Questions Presented

1. Whether the Board may award pecuniary compensatory damages for proven adverse tax consequences resulting from receipt of a lump-sum back pay award in a disability-discrimination case.
2. Whether Murray established entitlement to an amount of pecuniary compensatory damages for adverse tax consequences when she had not yet submitted evidence of her actual tax liability.
3. Whether the $22,000 award of nonpecuniary compensatory damages was appropriate.

Disposition

reversed_and_remanded