Legal Update

Jul 6, 2005

Fifth Circuit Affirms Dismissal Of Title VII Claims Based Upon Former Employee's Failure To Disclose Them In Bankruptcy Case

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Employers secured a key victory on June 13, 2005, in the on-going battle against employees who seek bankruptcy protection, yet fail to disclose their alleged Title VII claims, presumably in the hope of keeping any awards out of their creditor’s pockets. In Jethroe v. Omnova Solutions, Inc. , No. 04-60557 (5th Cir. June 13, 2005), the Fifth Circuit held that, under the doctrine of judicial estoppel , a Title VII plaintiff who fails to disclose discrimination claims during the pendency of a bankruptcy proceeding does not have the right to simultaneously or subsequently maintain a Title VII lawsuit.

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