Blaney v. International Association of Machinists and Aerospace Workers, District No. 160
In Blaney v. International Association of Machinists and Aerospace Workers, District No. 160 (2002) 114 Wn. App. 80, the Washington Court of Appeal held that a plaintiff in a gender discrimination action under the Washington Law Against Discrimination (WLAD) was entitled to recover damages for the income tax consequences of a compensatory damages award as a component of " 'actual damages' " awardable under the WLAD.
The court's opinion turned on its interpretation of the phrase " 'actual damages' " in the statute (RCW 49.60.030(2)). (Blaney, supra, 114 Wn. App. at pp. 92-101.)
The court observed that whether tax consequences are damages is a matter of state law and limited its holding to discrimination cases under the WLAD. (Id. at pp. 94, 100.)