VIRGINIA EMERSON HOPKINS, District Judge.
Anthony Martin ("Mr. Martin") initiated this job discrimination lawsuit arising under Title VII, § 1981, and the Americans with Disabilities Act ("ADA") against EarthLink Shared Services, LLC ("EarthLink") on December 26, 2012. (Doc. 1). On April 19, 2013, EarthLink filed a Motion for Summary Judgment (Doc. 14) (the "Rule 56 Motion") asserting the affirmative defense of judicial estoppel. On this same date, EarthLink filed its brief and supporting evidence. (Doc. 15).
Mr. Martin opposed the Rule 56 Motion (Doc. 21) on May 31, 2013. Mr. Martin also filed a Renewed Motion To Substitute (Doc. 24) ("Substitution Motion") on June 5, 2013.
EarthLink filed a reply brief (Doc. 25) and opposed the Substitution Motion (Doc. 26) on June 14, 2013. Neither party filed any further briefing.
Accordingly, both motions are under submission, and, for the reasons explained below, EarthLink's Rule 56 Motion is
Summary judgment is proper only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c). "[A]ll reasonable doubts about the facts" and "all justifiable inferences" are resolved in favor of the nonmovant. Fitzpatrick v. City of Atlanta, 2 F.3d 1112, 1115 (11th Cir. 1993) (internal quotation marks omitted) (quoting United States v. Four Parcels of Real Property, 941 F.2d 1428, 1437 (11th Cir. 1991)). A dispute is genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L. Ed. 2d 202 (1986). "Once the moving party has properly supported its motion for summary judgment, the burden shifts to the nonmoving party to `come forward with specific facts showing that there is a genuine issue for trial.'" International Stamp Art, Inc. v. U.S. Postal Service, 456 F.3d 1270, 1274 (11th Cir. 2006) (citing Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1356, 89 L. Ed. 2d 538 (1986)).
Finally "[i]f the movant bears the burden of proof on an issue, because, as a defendant, it is asserting an affirmative defense, it must establish that there is no genuine issue of material fact as to any element of that defense." International Stamp, 456 F.3d at 1274 (citing Martin v. Alamo Community College Dist., 353 F.3d 409, 412 (5th Cir. 2003)).
Mr. Martin opposes EarthLink's Rule 56 Motion on two different fronts. First, Mr. Martin maintains that he is not subject to judicial estoppel. (Doc. 21 at 5-8). Second, Mr. Martin contends that even if judicial estoppel applies to him, the doctrine does not extend to the proposed substituted party, Ms. Thompson, in her capacity as the Chapter 7 bankruptcy trustee, pursuant to the Eleventh Circuit's holding in Parker v. Wendy's International, Inc., 365 F.3d 1268 (11th Cir. 2004). (Doc. 21 at 8-10). Having studied both sides' positions, the court agrees with Mr. Martin's alternative argument,
More specifically, in Burnes, "[t]he parties agree[d] that the bankruptcy court, the bankruptcy trustee, and Billups' creditors never knew about the pending lawsuit." 291 F.3d at 1288. Therefore, unlike Parker, Burnes did not address the application of judicial estoppel to the interests of a bankruptcy trustee who seeks to prosecute claims connected to a bankruptcy estate, but rather applied the doctrine solely to a debtor, who had inconsistently omitted any report of his pending district court claims to the bankruptcy court. Further, the Burnes court cautioned that "courts must always give due consideration to all of the circumstances of a particular case when considering the applicability of this doctrine." Burnes, 291 F.3d at 1286.
Parker subsequently clarified that an exception to the application of the judicial estoppel doctrine occurs when a bankruptcy trustee's interests are actively at stake. See Parker, 365 F.3d at 1272 ("The correct analysis here compels the conclusion that judicial estoppel should not be applied
365 F.3d at 1272 (emphasis added). Here, the same is true with respect to Ms. Thompson's actions as the trustee-the record confirms that she has not abandoned Mr. Martin's discrimination claims and, instead, as evidenced by the bankruptcy court order dated June 3, 2013, approving the employment of a professional person (Doc. 22 at 3) as well as the pending Substitution Motion, she seeks to have Mr. Martin's counsel continue with the pursuit of these claims on her behalf as trustee over Mr. Martin's bankruptcy estate. Also, EarthLink has not shown where Ms. Thompson ever has taken "an inconsistent position under oath with regard to [Mr. Martin's bankruptcy estate's] claim[s]." Id.
Parker contrasted its judicial estoppel defense holding from other types of valid defenses that still could bar a trustee's pursuit of a claim post-petition. See Parker, 365 F.3d at 1272 n.2 ("We are not holding that it is impossible for a valid defense against a pre-petition claim brought by the trustee to arise post-petition."); id. ("For instance, if Parker had filed this claim after the statute of limitations had passed, the statute of limitations defense would bar Reynolds from pursuing this claim, just as it would bar Parker from pursuing it.").
Parker also questioned, in dicta, whether Burnes should have been decided on jurisdictional as opposed to judicial estoppel grounds:
Parker, 365 F.3d at 1272 (emphasis added).
EarthLink suggests that a key distinguishing factor in Parker is that "the trustee [there] received permission to intervene before the defendants ever raised the issue of judicial estoppel." (Doc. 25 at 6 (emphasis in original)). While, in summarizing the trustee's multiple contentions, the Parker court did include this procedural history, see Parker, 365 F.3d at 1270 ("Reynolds contended that this sequence of events also distinguished this case from Burnes because the debtor in Burnes only moved to reopen his bankruptcy case after the defendant argued judicial estoppel."), this court does not interpret the mere mention of such a contention as background material to mean that only those trustees who seek intervenor or substitution status in advance of a defensive judicial estoppel motion are protected by Parker's unambiguous holding. Moreover, if the Parker court had wanted to impose such a limitation on its holding, then it simply could have done so by expressly embracing that particular argument advanced by the trustee. Instead, the court chose to preclude the operation of the judicial estoppel defense to the Chapter 7 trustee
As legal support, EarthLink cites to no binding authorities, but instead primarily to an unpublished opinion by the Eleventh Circuit, Jones v. United States, No. 11-13158, 467 Fed. App'x 815 (11th Cir. Mar. 14, 2013), and a district court decision from the Middle District of Florida, Marshall v. Electrolux Home Products, Inc., No. 6:05-CV-1587-Orl-18KRS, 2006 U.S. Dist. LEXIS 91886 (M.D. Fla. Dec. 19, 2006). (Doc. 25 at 6-7).
The court has reviewed both of these cases and finds them to be either inapplicable or unpersuasive. Turning first to Jones, the Eleventh Circuit's decision to uphold the district court's denial of the trustee's motion to substitute turned on the issue of standing to pursue the appeal, and not the timing, or the merits of the trustee's motion:
Jones, 467 Fed. App'x at 819 (emphasis added).
Additionally, the panel in Jones acknowledged, in dicta, that, under Parker, an "innocent" trustee is not subject to judicial estoppel even when the debtor is barred, and, in doing so,
Jones, 467 Fed. App'x at 819 (emphasis added).
Thus, the record in Jones established that the trustee had abandoned Jones's claim by choosing not to pursue the district court's denial of the motion to substitute on appeal. Further, nothing in Jones lends legal support to EarthLink's proposition that the timing of trustee's motion to substitute is a relevant inquiry when deciding whether judicial estoppel applies to a trustee under Parker.
While the Marshall decision does dovetail with EarthLink's position, 2006 U.S. Dist. LEXIS 91886, at *9-10, the court simply disagrees with the district court's reliance upon Burnes as controlling, instead of Parker. Additionally, the Eleventh Circuit never addressed whether the district court abused its discretion in Marshall when following Burnes in lieu of Parker, as the ruling favorable to the defendant apparently never was appealed.
In sum, based upon this court's understanding of Burnes and Parker, it would have decided the trustee's motion to intervene differently in Marshall and, therefore, this court is unpersuaded by that opinion's analysis. Further, in the absence of any binding precedent which limits the coverage of Parker in the manner adopted in Marshall,
The Substitution Motion seeks to substitute Ms. Thompson for Mr. Martin as the real party plaintiff in this action. (Doc. 24 at 2 ¶ 2). The Substitution Motion refers to the bankruptcy court's order dated June 3, 2013, which approved Ms. Thompson's request to allow Mr. Martin's current counsel to represent her in the further prosecution of the bankruptcy estate's claims that are pending before this court. (Doc. 24 at 2 ¶ 3); (see also Doc. 22 at 3 ("The Application by Trustee for Approval of Employment of Adam M. Porter as a Professional Person is hereby GRANTED.")). EarthLink opposes the merits of the Substitution Motion on the bases of Jones and Marshall. Consistent with the court's analysis denying EarthLink's Rule 56 Motion, the Substitution Motion is
Accordingly, EarthLink's Rule 56 Motion is