Slater v. United States Steel Corp.

After plaintiff filed an employment discrimination case against US Steel, she filed a Chapter 7 bankruptcy petition that did not disclose the employment-discrimination claims. The Chapter 7 Trustee was treating the bankruptcy as a “no asset” case. U.S. Steel moved the district court for dismissal. An Eleventh Circuit panel initially affirmed the district court in holding that judicial estoppel required dismissal of the bankruptcy case. Upon rehearing en banc, the Eleventh Circuit overruled precedent “that permitted the inference that a plaintiff intended to make a mockery of the judicial system simply because he failed to disclose a civil claim” and remanded for a determination of whether a plaintiff’s inconsistent statements were calculated to make a mockery of the judicial system. When the plaintiff’s inconsistent statement is an omission in bankruptcy disclosures, the court may consider such factors as the plaintiff’s level of sophistication, whether and under what circumstances the plaintiff corrected the disclosures, whether the plaintiff told his bankruptcy attorney about the civil claims before filing the bankruptcy disclosures, whether the trustee or creditors were aware of the claims before the plaintiff amended the disclosures, whether the plaintiff identified other lawsuits to which he was party, any findings or actions by the bankruptcy court after the omission was discovered, and any other fact relevant to the intent inquiry.” View "Slater v. United States Steel Corp." on Justia Law