Hello Clint:
I am not Dennis Knutson but I think I can answer your question. I hope you don't mind.
VI errors are clusters containing status, code, and source. You can unbundle the error cluster to determine the code. If I'm not mistaken, the error code for Serial Read Time-out is -1073807339. You can connect the error code to a case structure. If the error code is equal to -1073807339, then have an output of "FAIL" then clear the error using "Clear Errors.vi"; then on the default case, have an output of "PASS".
I hope this helps. Please inform me if you have further questions.