NYC “Racist” Teacher Exam Settlements | Settlement Planning Issue

John Darer
July 19, 2023

How a $2M Settlement Can Be Reduced to a Fraction

"Grim Reaper"?

Herman Grim is a 64-year-old black man from Queens in New York City, and he also happens to be rich, according a news report, after scoring $2 million from the City of New York after he failed a mandatory teacher’s test over and over again — a test that the court determined was racist. [see NYC bias suit: Black, Hispanic teachers and ex-teachers rich (nypost.com).

Regardless of how readers may personally feel about the situation or the mischaracterization that Grim is going to reap millions and “be rich”, I’m saying “it ain’t so”. Here’s why. Because Grim’s attorney fees must be paid and further that the damages payable to Grim are taxable, Grim won’t be reaping much of that without advance settlement planning. Without such advanced settlement planning he will likely net less than $1M after taking into account legal fees, which should be deductible if damages that the payment represents, falls under the “unlawful discrimination” category (see Wood link below), and taxes.

New York City Alleged "Racist" Mandatory Teacher Test Settlement Involves 5.200 Black and Hispanic Teachers

and Those Who Aspired to Be Teachers

Around 5,200 black and Hispanic teachers and once-time-aspiring teachers who took the test during a 30-year span received over $1.8 billion in judgments in their federal discrimination lawsuit, according to the New York Post which reported ““As of Friday, 225 people who failed the Liberal Arts and Sciences Test used for teacher licensing from 1994 to 2014 had already been notified they’re getting settlements of at least $1 million, according to an analysis of Manhattan federal court records,” the Post report reads. “Court rulings found the exam violated civil-rights laws, allowing far more white candidates to pass.”

Because Grim failed the test so many times, he ended up getting the biggest payout of them all — $2,055,383 said The Post. But again that’s not what Grim Reaps.

Following are links to what may be some helpful reads.

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