There’s more than one way to get a lawsuit thrown out.
Employees who are declaring bankruptcy are supposed to let the bankruptcy court know about any lawsuits they’re involved in. If they’ve sued you for discrimination and don’t tell the court, their discrimination lawsuits may be dismissed.
That’s because bankruptcy courts are supposed to look at all possible assets. A pending lawsuit is one such asset because it could result in a monetary award. Concealing that asset is akin to fraud.
Recent case: Brenda Robinson worked for Tyson Foods and filed for bankruptcy protection. While the bankruptcy case was still pending and before she had paid all her creditors, she quit her job. She then filed a discrimination lawsuit against Tyson, alleging “racial abuse and intimidation.”
Tyson found out about the bankruptcy filing while Robinson’s lawsuit was pending and asked the court to dismiss the case against it. When the trial court agreed, Robinson appealed.
But the 11th Circuit Court of Appeals sided with Tyson and dismissed the discrimination claim because Robinson hadn’t told the bankruptcy court she was suing Tyson. The court said failing to disclose the information was unfair to creditors and might give those who have their debts restructured or forgiven a windfall at their creditors’ expense. (Robinson v. Tyson Foods, No. 08-14991, 11th Cir., 2010)
Final note: In the current economy, bankruptcy filings are climbing. There’s a good chance a former employee may file.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/11299/employee-whos-suing-filed-for-bankruptcy-you-may-have-a-get-out-of-jail-free-card "