Back in August, we reported on a DC Circuit Court decision that determined that non-economic damage awards in personal injury cases were not “income” for federal income tax purposes.  Now, in an unusual move, the same court has scheduled the matter for oral arguments this spring and invited briefs on the issue.

Until 1996, the Internal Revenue Code itself made it clear that awards in personal injury cases were intended to “make the plaintiff whole”, and as such were not “income”.  However, a 1996 amendment limited the exclusion to awards stemming from physical illness or injury.  The change apparently shifted a wide range of awards in civil cases–awards for damages such as loss of reputation and enjoyment of life–into the taxable column.

The DC Court’s initial ruling relied upon the definition of “income” as “gain” to determine that any award intended only to restore the plaintiff to his or her previous position could not be considered income.  As such, no compensatory award would be subject to taxation as income.

Now, with the Court’s strange and apparently unprovoked order, the question is once more open.  The New York Personal Injury Law Blog has a nice overview of the progress of this case with links to some more extensive writings on the issue and the text of the court’s most recent (and largely unenlightening) order.

The family of a radio contestant who died from ingesting huge amounts of water in an attempt to win a Nintendo Wii may have a personal injury case against the radio station.

Jennifer Strange died last Friday of water intoxication (hyponatremia), a fatal dilution of sodium in the blood, after participating in the radio contest for 107.9 FM “The End.” The morning show responsible for the contest has been indefinitely cancelled, and the General Manager of 107.9 FM said the station is waiting for more information on why the tragic event occurred.

While Strange and other contestants signed waivers, 107.9 FM could have responsibility for the death if the waiver did not state such a risk, according to one California personal injury attorney in an online story on KCRA.com.

It is unknown if the family of Strange will file a personal injury claim in the future.

A 55-year-old Iowa man was recently awarded $1.1 million by a U.S. District Court during his civil personal injury suit against a Grand Rapids railroad company.  

Reginald Booker worked as a carman for CSX Railroad for 24 years but had to leave the job when a hopper car fell off its jacks and nearly crushed him in September 2003.

Booker suffered serious nerve, vertebrae and pelvis injuries from the train accident, and now walks with a cane and a limp because of his disabilities.

The railroad car accident verdict originally awarded $1.4 million but was reduced 25% due to Booker’s own “contributory negligence” during this Iowa personal injury incident.

The widow and estate of a man who burned to death inside his airplane following a crash during a 1999 Washington air show was awarded about $10.5 million in a personal injury suit against the show’s sponsors.

Donald Allen Corbitt initially survived the airplane crash of his experimental RV-6A during the 1999 Arlington Fly-In but remained trapped alive when a fire broke out inside the plane. Bystanders attempted to put out the fire with fire extinguishers that gave out before fire officials arrived nearly six minutes later. Corbitt died before fire officials could put out the blaze.
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The Washington personal injury attorneys of Corbitt’s widow and estate successfully argued that the show’s sponsors,  the Northwest Experimental Aircraft Association and the Experimental Aircraft Association based in Wisconsin, should have had ample fire and emergency response personnel at the event given the risks involved.

The city of Arlington and its fire department were also originally sued, but those charges were dropped two years ago in the lawsuit.

A police officer was recently awarded $14.8 million against New York state in a very interesting personal injury lawsuit involving a freak ATV accident and liability questions.

Police officer Scott Brumber was driving down a closed pathway after a shift in May 2002 when his ATV got snagged on a metal pipe sticking out of the sandy roadway, flipped over, and then landed on him and crushed his spine. Brumber is now confined to a wheelchair.

Brumber was unaware that he was not supposed to be driving on the shortcut, and his New York personal injury attorney showed that the state posted no signs indicating the pathway as off-limits and didn’t even close off the area.

The personal injury attorney also demonstrated that the state created and knew of the hazard as the pipe was leftover from a state-constructed snow fence that hadn’t been maintained, and successfully proved negligence since the state did nothing to remove the danger.

A U.S. District Judge approved a settlement to pay thousands of dollars to hundreds of people who were injured from hazardous exposure to a toxic cloud following a 2005 train derailment in their small South Carolina town.

In early January 2005, a Norfolk Southern train veered off track and smashed into a parked train transporting chlorine. The wreck released a toxic cloud over the tiny mill town of Graniteville.

Nine people died from the poisonous fumes. 250 people were injured and some 5,400 people had to evacuate the town.

Under the personal injury settlement, Norfolk Southern will pay anyone who sought medical attention within three months of the railroad accident anywhere from $10,000 up to several hundred thousand dollars.

South Carolina personal injury lawyers expect about 760 people to qualify to receive money under the class action suit.

The family of a Spanish woman who allegedly suffered a fatal brain injury after going on a ride at a Disney theme park has recently settled its personal injury lawsuit with the Walt Disney Co.

Cristina Moreno went on the Indiana Jones Adventure thrill ride during her 2000 honeymoon at Disneyland and reportedly passed out a short time later when returning to her hotel room. The 23-year-old Moreno never regained consciousness from her brain hemorrhage and died two months later.

Her family was seeking more than $1 million in damages during a wrongful-death lawsuit which contended that Disney knew the ride’s excessive forces, especially its shaking, could cause serious injuries to riders.

Terms of the personal injury settlement were not disclosed, and Disney did not admit responsibility.

In a very unusual personal injury lawsuit, 8 year old Teddy Harrison claims his parents failed to buckle his car seat properly before he was thrown from his parents SUV in a car accident.  He was only 3 when he suffered a brain injury and became permanently disabled as a result of the automobile accident that happened in 2001.

Now Teddy is suing his parents with help from his grandmother.  The odd thing is that his parents hope Teddy wins the Minnesota personal injury case because it would force their auto insurance company to pay Teddy $100,000. 

The Minnesota Supreme Court listened to arguments for both sides of the Minnesota personal injury case on Thursday.  The Minnesota Trial Attorneys Association, a network of mostly personal injury attorneys, filed a brief to support Teddy’s position.

Tayna Milner alleged she was pushed down the stairs, fell and suffered unspecified injuries during a rush for seats at the taping of Oprah Winfrey’s show.  Milner is suing Harpo Studios for more than $50,000, according to the personal injury lawsuit filed in the Cook County Circuit Court.

In four different cases brought by the FTC, marketers for Bayer, Cortislim, Trim-Spa and Xenadrine weight loss products were held accountable for the unsubstantiated claims made in their marketing campaigns.

Anna Nicole Smith, the celebrity spokes-model for Trim-Spa, said she lost 69 lbs in less than a year.  The FTC prohibits the marketers from advertising any more similar weight loss claims unless they are substantiated by reliable scientific studies.

The $25 million settlement is only the amount marketers for the four companies agreed to pay the FTC.  Marketers for Xenadrine EFX  have also agreed to pay $22.5 million for personal injury claims brought by consumers.

Frances Radar, a nurse and mother of four living in Washington, was left with severe brain injuries when a driver of another vehicle hit her car.  Radar’s car was blocked from the view of the other driver by a King County dump truck and loader.

Radar is unable to return to work as a nurse since she suffered the head and back injuries.  The driver of the vehicle agreed to a $2 million injury case settlement.  Her personal injury lawsuit against King County was scheduled for trial in February.  However, the county agreed to settle the injury case for $3 million.

Franklin County Detective Sgt. Jason Grellner suffered lung injuries during a meth lab investigation in 2002.   Troy Manning left a container containing anhydrous ammonia, an ingredient used to manufacture methamphetamine, in plain sight in his front yard.  Grellner opened the container expecting to see crushed lithium batteries, also used for making meth, and was overcome by the toxic fumes that ultimately caused injuries to his lungs and respiratory system.  

The Missouri personal injury suit claimed Manning was negligent and reckless for leaving the container in the open without any warnings on it.  The jury issued a $5 million personal injury verdict which was $400,000 higher than Grellner had originally requested.  Grellner said “I believe the jury was sending a message to meth lab manufacturers.”