Love v. Tyson Foods, Inc.

Summarized by John Jones , J. R. Jones Law PLLC
13 years 11 months ago

Citation:

Case No. 10-60106 (5th Cir. April 4, 2012)

Tag(s):

Ruling:

The 5th Circuit, in a majority opinion over a strong dissent by Judge Haynes, affirmed summary judgment and dismissal granted by the district court in a separate proceeding based on the doctrine of judicial estoppel because Debtor/Plaintiff failed to disclose claim and lawsuit for discrimination and retaliation in bankruptcy proceeding that existed at time of plan confirmation. The 5th Circuit also held that it is not necessary to show detrimental reliance by litigant because the doctrine of judicial estoppel is designed to protect the judicial system rather than the litigants. Further, the court held that judicial estoppel is particularly appropriate when an asset is undisclosed in bankruptcy and debtor pursues a claim in a separate proceeding based on the undisclosed asset and the omission is not inadvertent. A failure to disclose a claim is inadvertent only where a debtor lacks knowledge of the claim or has no motive to conceal the claim.

Procedural context:

Debtor Love filed for bankruptcy on May 1, 2008 and also filed a claim with the EEOC on May 30, 2008. His Chapter 13 plan was confirmed on September 22, 2008. Debtor received his right to sue letter on December 16, 2008 and filed a lawsuit in federal district court on March 12, 2009. Tyson filed a motion for summary judgment on July 16, 2009 based on the doctrine of judicial estoppel for failure to disclose claim in bankruptcy. Debtor/Plaintiff subsequently filed an amended schedule in his bankruptcy on July 22, 2009. On January 7, 2010, the district court granted Tyson's motion for summary judgment and dismissed the case. Debtor/Plaintiff appealed.

Facts:

Tyson Foods hired Willie Love to be a truck driver and filed him three days later because he failed to disclose a prior positive drug test. Love alleged that Tyson had discriminated against him because the application only required disclosure of positive drug tests within three years of application. Tyson rehired Love but required him to take monthly drug tests and subsequently fired Love when he tested positive for drug use. Love then filed a claim for discrimination with the EEOC on May 30, 2008. Although Love had filed for bankruptcy on May 1, 2008, he did not amend or list the claim in his bankruptcy schedules. Love's Chapter 13 bankruptcy plan was confirmed and under the plan unsecured creditors were not to receive anything. Love received his right to sue letter on December 16, 2008 and filed a lawsuit in federal district court on March 12, 2009. Tyson filed a motion for summary judgment on July 16, 2009 based on judicial estoppel for failure to disclose claims in bankruptcy and Debtor subsequently filed an amended schedule in his bankruptcy on July 22, 2009. On January 7, 2010, the district court granted Tyson's motion for summary judgment and dismissed the case.

Judge(s):

King, Wiener and Haynes

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