Spohn v. Van Dyke Public Schools
296 Mich. App. 470
| Mich. Ct. App. | 2012Background
- Spohn sued for workplace sexual harassment under CRA; defendants moved for summary disposition on judicial estoppel based on nondisclosure in Chapter 13 bankruptcy.
- Spohn filed Chapter 13 petition on November 27, 2008; plan filed December 9, 2008; plan confirmed February 25, 2009.
- Harassment incidents occurred September 2008 through early December 2008; Spohn’s employment ended January 6, 2009.
- Spohn and husband met creditors January 14, 2009; trustee objected to the plan January 23, 2009; bankruptcy petition later dismissed March 11, 2010.
- Spohn did not disclose the sexual harassment claim in bankruptcy and did not amend the petition while proceedings were pending.
- Trial court granted summary disposition on judicial estoppel; opinion affirms the ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether judicial estoppel barred Spohn's CRA claim | Spohn had no motive; no knowledge of asset; no benefit from nondisclosure. | Nondisclosure and plan confirmation satisfied elements of judicial estoppel. | Yes; estoppel barred the claim. |
| Whether Spohn assumed a contrary position in bankruptcy | She lacked knowledge and motive at filing. | She failed to disclose assets; plan confirmation adopted contrary position. | Yes; assumed contrary position. |
| Whether the nondisclosure was due to mistake or inadvertence | There was no intentional concealment; no incentive to conceal. | Evidence shows knowledge of potential claim and concealment; bad faith presumed. | No; not a mistake or inadvertence. |
| Whether Spohn received an unfair advantage or detriment | Bankruptcy was not discharged; no advantage from nondisclosure. | Nondisclosure harmed creditors and estate; estoppel serves integrity of system. | Yes; unfair advantage to Spohn. |
Key Cases Cited
- Dextrom v Wexford Co, 287 Mich App 406 (2010) (persuasive on summary-judgment standards and estoppel)
- Taylor v Laban, 241 Mich App 449 (2000) (relevance to Michigan appellate review standards)
- Allison v AEW Capital Mgt, LLP, 481 Mich 419 (2008) (bankruptcy disclosure duties and fiduciary standards)
- White v Wyndham Vacation Ownership, Inc, 617 F3d 472 (CA6 2010) (factors in judicial estoppel and bad-faith findings)
- New Hampshire v Maine, 532 US 742 (2001) (unfair-advantage/detriment considerations)