Myers v. TOOJAY'S MANAGEMENT CORP.
640 F.3d 1278
11th Cir.2011Background
- Myers filed Chapter 7 in Jan 2008, moved to Florida, worked at Starbucks during bankruptcy; debts discharged May 2008.
- He interviewed for a manager position at TooJay's Gourmet Deli in July 2008; on-the-job evaluation (OJE) conducted July 31–Aug 1, 2008.
- During OJE, Myers completed employment forms showing OJE; multiple forms referenced him as employee, with OJE noted on top.
- TooJay's issued an offer later rescinded Aug 4, 2008, based on a consumer report; Myers learned the reason was his bankruptcy.
- Myers sued TooJay's Sept 2008 alleging § 525(b) discrimination (private employer) for denying hire and, alternatively, wrongful termination if hired; the district court granted summary judgment on denial-to-hire claim; a jury found Myers did not become an employee; the district court denied JMOL and new-trial motions, and the case appealed.
- TooJay's paid Myers for two days of OJE and later acknowledged withdrawal of the employment offer; the record raises credibility issues about when hiring occurred and whether an employment relationship formed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 525(b) bars private employers from denying employment due to bankruptcy | Myers argues §525(b) prohibits denial of hire based on bankruptcy status | TooJay's contends §525(b) does not reach refusals to hire | Section 525(b) does not prohibit refusals to hire by private employers |
| Whether § 525(b) prohibits termination after hiring on the basis of bankruptcy | Myers asserts he was fired for bankruptcy | TooJay's argues no proven employment relationship existed | Court affirms jury finding that no employment relationship existed; no LMOL; no new-trial error |
| Standard of review for JMOL and new-trial on bankruptcy-discrimination claims | N/Acould argue for new trial or JMOL based on weight of evidence | Court should uphold jury verdict if supported by credibility evidence | Appellate review applied de novo for JMOL and abuse-of-discretion for new trial; no reversible error |
Key Cases Cited
- In re Burnett, 635 F.3d 169 (5th Cir.2011) (private §525(b) does not prohibit denying employment to debtors)
- Rea v. Federated Investors, 627 F.3d 937 (3d Cir.2010) (private §525(b) does not prohibit denying employment to debtors)
- Burnett v. Stewart Title, Inc., 431 B.R. 894 (S.D.Tex.2010) (bankruptcy court applying §525(b) guidance)
- Fiorani v. CACI, 192 B.R. 401 (E.D.Va.1996) (§525(b) interpretation contextually limited)
- Pastore v. Medford Sav. Bank, 186 B.R. 553 (D.Mass.1995) (statutory interpretation under §525)
- In re Stinson, 285 B.R. 239 (Bankr.W.D.Va.2002) (bankruptcy proceedings on discrimination claims)
- In re Madison Madison Int'l of Ill., 77 B.R. 678 (Bankr.E.D.Wis.1987) (early bankruptcy-treatment of §525(b) interpretation)
- Gomez-Perez v. Potter, 553 U.S. 474 (2008) (selective inclusion presumption rationale in statutory gaps)