Failure to Notify Bankruptcy Court of Discrimination Suit Knocks Out Damages

August 31, 2010

In a novel approach to judicial estoppel, a federal judge has ruled that a plaintiff in a pregnancy discrimination suit who failed to inform the bankruptcy court of her pending discrimination claims must be barred from seeking any compensatory damages in that case, but should still be allowed to pursue declaratory and injunctive relief. The judge found that complete dismissal would be "a drastic remedy" because the evidence showed the plaintiff had a potentially valid discrimination claim that must be evaluated by a jury.