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Sexual harassment claim dismissed because victim did not report claim in bankruptcy petition

Ruth Jarrett-Cooper sued  Robert Rossett and others for sexual harassment. Late in the management of the litigation, the Defendants realized that Jarrett-Cooper had not listed her potential lawsuit as an asset in bankruptcy.  They argued that she should be judicially estopped from pursuing the claim because her lawsuit was inconsistent with her failure to disclose the claim to the bankruptcy court. 

Even though the woman claimed she did not recognize the potential future lawsuit as an asset that needed to be reported on her bankruptcy petition, the Court held that her failure to list it must result in dismissal of her claim.  Other courts have come to the opposite result, after weighing the potential "bad faith" or innocent error of the claimant. 

Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
Toll Free: 1-800-678-1307
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