(Bankr. E.D. Ky. Aug. 7, 2014)
The bankruptcy court grants stay relief to two creditors holding employment discrimination claims against the debtor, allowing the creditors to proceed with their litigation against the debtor in the federal district court. The court determines that the claims are “personal injury tort” claims, and thus the bankruptcy court does not have authority to liquidate or estimate the claims pursuant to 28 U.S.C. § 157. Opinion below.
(Seventh Circuit Issued June 24, 2014)
The Seventh Circuit reverses the district court’s grant of summary judgment in favor of the defendant employer. The plaintiff had previously filed bankruptcy and failed to schedule as an asset an employment discrimination claim. The defendant employer moved for summary judgment on the basis that the plaintiff should be estopped from asserting the claim after omitting it from her schedules. The district court granted the motion, but the appellate court reversed, finding the transcript from the 341 meeting reflected that the plaintiff had disclosed the claim and thus there was a genuine issue of material fact as to whether the plaintiff intentionally omitted the claim such that estoppel would apply. Opinion below.
Kentuckiana Bankruptcy Opinions 