Burnett v. Stewart Title, Inc. (In Re Burnett)
635 F.3d 169
| 5th Cir. | 2011Background
- Burnett filed a Chapter 13 bankruptcy in 2006.
- In 2007 Burnett interviewed with Stewart Title for a job that was offered pending drug and background checks.
- Stewart rescinded the offer after discovering Burnett's bankruptcy during background check.
- Burnett sued Stewart under 11 U.S.C. § 525(b) alleging private-employer discrimination based on bankruptcy status.
- Bankruptcy court dismissed; district court affirmed; Fifth Circuit affirmed the district court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 525(b) prohibits private employers from discriminating in hiring based on bankruptcy status | Burnett argues § 525(b) bars private hiring discrimination. | Stewart argues § 525(b) does not cover private hires; only prohibits discharge/denial of employment terms beyond hiring. | No, § 525(b) does not prohibit private hiring discrimination. |
Key Cases Cited
- Rea v. Federated Investors, 627 F.3d 937 (3d Cir.2010) (§ 525(b) does not create a private-causes-of-action for hiring discrimination)
- Leary v. Warnaco, Inc., 251 B.R. 656 (S.D.N.Y. 2000) (distinguishes the scope of § 525(b))
- Russello v. United States, 464 U.S. 16 (1983) (presumption of intentionality; disparate inclusion)
- In re Supreme Beef Processors, Inc. v. Zayler, 468 F.3d 248 (5th Cir.2006) (read statute as a whole; avoid superfluous language)
- United States v. Zavala-Sustaita, 214 F.3d 601 (5th Cir.2000) (consideration of legislative knowledge and context in statutory interpretation)