Bankruptcy

Recent 5th Cir. Case on Bankruptcy Discrimination

By mcbride

The Fifth Circuit Court of Appeals just issued an opinion on the subject of employment discrimination based on a potential employee’s previous bankruptcy filing.  In this case, the Court of Appeals ruled that:

“The bankruptcy court granted [the potential employer's] Stewart?s motion to dismiss [the suit by the potential employee] for failure to state a claim, holding that § 525(b) does not create a cause of action against private employers who discriminate in hiring on the basis of an applicant?s bankruptcy status. The district court affirmed, and so do we.”

Here is a link to the entire case which was issued on March 4, 2011: http://www.ca5.uscourts.gov/opinions/pub/10/10-20250-CV0.wpd.pdf

Michael

Full post as published by Texas Lawyer Blog on March 14, 2011 (boomark / email).