CARL J. BARBIER, District Judge.
This matter is before the Court on Defendant Turner Industries Group, LLC's Motion for Summary Judgment on the claims of Calvin Parker
This employment discrimination claim arises from an employer's decision to terminate one of its employees. Defendant Turner Industries Group, LLC ("Turner") maintained a maintenance service contract with Defendant Chevron Oronite Company, LLC ("Chevron"), under which Turner's employees were assigned to work at Chevron's Oak Point plant in Belle Chasse, Louisiana.
Plaintiff Calvin Parker was first hired by Turner in 2006 and assigned to work at the Oak Point facility. After approximately four years of employment, on July 23, 2010, Parker was terminated by Turner's Site Superintendent, Jack "Bubby" Trahant, after a Chevron foreman took pictures of him allegedly sleeping on a bench during one of his regularly scheduled morning breaks, in violation of Turner's written policies. Parker denies that he was sleeping and maintains instead that he was only laying down to "cool off" because he had been working in the plant's steam and condensate area, which is reportedly very hot.
On May 27, 2011, Parker filed the instant lawsuit, alleging that Turner and Chevron had subjected him to racial harassment and had eventually terminated him because of his race, in violation of 42 U.S.C. § 1981.
Shortly thereafter, Defendants jointly filed the instant motion for summary judgment, in which they contend that the doctrine of judicial estoppel now bars Parker from asserting these undisclosed claims. After filing an opposition, Parker subsequently amended his bankruptcy property schedules on February 3, 2012 to include the claims asserted in this lawsuit. While the summary judgment motion was pending, Parker settled his claims against Chevron, leaving only his claims against Turner at issue in the motion.
Summary judgment is appropriate when "the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." FED. R. CIV. P. 56(c)(2);
When assessing whether a dispute as to any issue of material fact exists, a court considers "all of the evidence in the record but refrains from making credibility determinations or weighing the evidence."
If the dispositive issue is one on which the nonmoving party will bear the burden of proof at trial, the moving party may satisfy its burden by merely pointing out that the evidence in the record is insufficient with respect to an essential element of the nonmoving party's claim.
Judicial estoppel is a doctrine that prevents a party from assuming inconsistent positions in litigation.
The Fifth Circuit has recognized three distinct elements which must be satisfied in order for judicial estoppel to be justifiably applied: "(1) the party's position must be clearly inconsistent with its previous one; (2) the court must have accepted the party's earlier position; and (3) the non-disclosure must not have been inadvertent."
Under the Bankruptcy Code, substantially all of a debtor's existing assets, including pending and potential claims, vest in the bankruptcy estate upon the filing of a voluntary bankruptcy petition.
Here, because subsequently amended his property schedule to include his employment discrimination claims, Parker submits that he is no longer asserting a position in one legal position that is contrary to a position asserted in another. The Court is not persuaded, however, as his argument is contrary to the balance of authority in this circuit.
Generally, a debtor must disclose a potential claim to the bankruptcy court prior to filing suit in order to avoid taking an inconsistent position in the two proceedings.
Consequently, even where a claim accrues after a bankruptcy petition has been filed, a debtor cannot "cure" his initial failure to disclose it to the bankruptcy court by subsequently amending his property schedules. In
Here, like the debtors in the aforementioned cases, the undisputed evidence shows that Parker assumed an inconsistent position by failing to disclose his claims to the bankruptcy court, notwithstanding his subsequent amendments to his property schedule. Parker filed a voluntary petition for Chapter 13 bankruptcy protection on July 3, 2010. His employment was terminated twenty days later on July 23, 2010, and he met with an attorney regarding a potential lawsuit against Turner and Chevron on October 15, 2010. Subsequently, on May 27, 2011, Parker filed the instant lawsuit. Notwithstanding his continuing duty to disclose this claim to the bankruptcy court, he did not disclose the claim before filing suit and did not amend his bankruptcy filings until February 3, 2012, several months after Chevron and Turner raised the issue in the instant motion.
Furthermore, and contrary to Parker's arguments, it is immaterial that he simply neglected to update his asset schedules, as opposed to making affirmative misrepresentations to the bankruptcy court. The law imposes an affirmative and ongoing duty to disclose all pending claims, and by virtue of his failure to do so until the issue was raised by his adversaries, Parker is deemed to have assumed an inconsistent position in this Court.
The bankruptcy court must also have "accepted" Parker's previous inconsistent position.
Here, Parker argues that this element is not met. He claims to have been completely unaware of the potential for a lawsuit against Turner and Chevron until he had the opportunity to meet with an experienced employment discrimination attorney on October 15, 2010, which was approximately two weeks after the bankruptcy court confirmed his Chapter 13 plan. Parker therefore maintains that the bankruptcy court's reliance upon his initial asset schedule has no bearing on the estoppel question.
It is clear, however, that Parker's knowledge of his legal rights is not what is determinative for purposes of the duty to disclose. Under binding Fifth Circuit precedent, a "debtor need not know all the facts or even the legal basis for the cause of action; rather, if the debtor has enough information . . . prior to confirmation to suggest that it may be a possible cause of action, then it is a `known' cause of action such that it must be disclosed."
Here, the record indisputably shows that Parker had knowledge of the facts giving rise to his claim prior to the confirmation of his bankruptcy plan. The Court confirmed and entered his Chapter 13 plan on September 29, 2012, over two months after his allegedly discriminatory termination, the facts of which Parker was admittedly aware. Furthermore, as Turner points out, and as Parker does not dispute, the record also shows that Parker had knowledge of many of the alleged incidents of racial harassment and discrimination of which he now complains prior to his termination.
Accordingly, even in the light most favorable to Parker, at most the record shows that Parker was unaware of his legal rights, or perhaps unaware of the precise legal basis for his claims, prior to the confirmation of his bankruptcy plan.
The final element of judicial estoppel requires that the party's non-disclosure was not inadvertent. In the context of judicial estoppel, a debtor's failure to satisfy his statutory duty of disclosure is only "inadvertent" where "the debtor either lacks knowledge of the undisclosed claims or has no motive for their concealment."
As was previously discussed, the record conclusively shows that Parker did not lack knowledge of the facts giving rise to his undisclosed claim, and accordingly, his non-disclosure cannot be inadvertent on this basis. Here, however, Parker maintains that the third element is not met here because he had no motive to conceal the claims asserted in this lawsuit.
The Court disagrees. Because Parker knew about his claim, he clearly had a motive to conceal it because his repayment obligations could be substantially alleviated if the bankruptcy court and his creditors were kept unaware of a potentially valuable asset.
Accordingly, for the reasons expressed above,
discrimination during his tenure at the Oak Point facility. Parker experienced race discrimination `all the time' . . . Parker also noticed several African American employees who had been at the facility for twenty or twenty five years, who were never promoted; however, Caucasian employees would begin a job and fast track their way to a promotion regularly. Further, Parker himself witnessed an incident at Oak Point wherein two individuals [Craig Johnson, an African American and Joe Thibodeaux, a Caucasian] got into a physical altercation after the Caucasian referred to the African American by the "N" word. Both men were terminated; however, Thibodeaux was hired back by Turner as a foreman once the contract rolled over. Johnson applied several times to get hired back on at Oak Point and was never hired again. Furthermore, the entire labor crew [whose job consisted of picking up garbage] was comprised of only African Americans and the only foreman position held by an African American was the foreman over that very same labor crew.");