Federal law prohibits private employers from terminating the employment of or discriminating with respect to employment against an individual because the individual is or was a debtor under the Bankruptcy Code. In a recent decision of the U.S. Court of Appeals for the Fifth Circuit, the appellate court held that the anti-discrimination provisions of the
bankruptcy
Appeals Court Holds Former Employee AND Bankruptcy Trustee Judicially Estopped from Collecting on Undisclosed Claims
By Russell Cawyer on
Posted in Case Summaries
The Fifth Circuit issued an important opinion on an issue (i.e., judicial estoppel) that arises frequently when litigating employment disputes. The issue is whether an innocent bankruptcy trustee is judicially estopped from collecting assets, on behalf of the creditors, that were not disclosed by the debtor in his bankruptcy filings. The court of appeals held that, like…