Russell Phillips v. Chicago Central & Pacific Railroad Company, a Delaware Corporation

APPEL, Justice.

In this case, we must determine the tax consequences of a general verdict under the Federal Employers’ Liability Act (FELA), 45 U.S.C. §§ 51-60 (2006). A railroad employee filed a negligence action against a railroad and obtained a favorable general jury verdict. The employer withheld a portion of the subsequent award to pay taxes allegedly due under the Railroad Retirement Tax Act (RRTA), 26 U.S.C. §§ 3201-3241, and paid the balance to the employee. When the employee refused to sign a satisfaction of judgment, the railroad sought an order of satisfaction from the district…