Recently, we discussed a decision that considered whether a former employee’s failure to initially list an employment discrimination claim on her bankruptcy schedules barred her from pursuing the claim against her former employer under the doctrine of judicial estoppel. The U.S. District Court for the Southern District of Texas considered the related question of whether a former employee plaintiff must reopen her bankruptcy case to list a Fair Labor Standards Act claim for failure to pay overtime wages and other claims discovered after the employee filed bankruptcy.
Continue Reading Plaintiff Lacks Standing to Pursue Claim that Was Discovered After Bankruptcy Filing

The U.S. District Court for the District of Columbia recently denied a motion to dismiss filed by Bravo! Facility Services, Inc. against a former employee who brought claims under the ADA, District of Columbia Human Rights Act, and the FMLA. Bravo! asserted that the plaintiff should be barred under the doctrine of judicial estoppel from asserting her claims because she initially failed to disclose her employment discrimination claims in her chapter 7 bankruptcy case filed after her employment terminated.
Continue Reading D.C. Court Rejects Judicial Estoppel Defense for Alleged Failure of Plaintiff to Schedule Employment Discrimination Claims in Bankruptcy Case

In a prior post, we set forth the potential liability of employers for collection of debts owed by employees in violation of the bankruptcy stay. To protect themselves from such liability, employers that accrue claims against their employees in the ordinary course of business should implement written protocols designed in consultation with bankruptcy counsel.

However, even employers that do not ordinarily accrue claims against employees must be careful to avoid violating the automatic stay – most notably when complying with creditor garnishment demands under state law.


Continue Reading Employee Pay and the Bankruptcy Stay – Potential Pitfalls Part 2: Garnishment Issues

In a recent Tenth Circuit case, Queen v. TA Operating, LLC, the Court held that judicial estoppel barred the lawsuit of debtors who sought to recover damages that exceeded the amount disclosed in bankruptcy proceedings.  This decision would likely apply to employment litigation as well.  In light of the Court’s holding, defendants who are