Tag Archives: Bankruptcy

Plaintiff Lacks Standing to Pursue Claim that Was Discovered After Bankruptcy Filing

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

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

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, … Continue Reading

Statements Made by a Debtor in Bankruptcy Court Could Bar Subsequent Employment Litigation Based on Judicial Estoppel

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 sued … Continue Reading