Thomas v. Indiana Oxygen Co.
32 F. Supp. 3d 983
S.D. Ind.2014Background
- Thomas filed Chapter 13, assets include potential legal claims; discrimination claims arose post-petition and relate to Indiana Oxygen job loss.
- Thomas was terminated May 2013; he alleged disability, retaliation, and wrongful termination under the ADA and public policy.
- Thomas disclosed the discrimination claim to the bankruptcy court only after Indiana Oxygen moved to dismiss; bankruptcy court later approved special counsel for the case.
- This district court concluded the discrimination claims are property of the bankruptcy estate and Thomas has standing to pursue them on the estate’s behalf.
- Judicial estoppel was argued to cap damages, but the court declined to apply estoppel given inadvertence not shown and pending bankruptcy case.
- The court left any damages cap or distribution to the bankruptcy court, deferring related determinations to that forum.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue in district court | Thomas always had standing | Claims are estate property; no disclosure | Thomas has standing to pursue claims as debtor in possession |
| Whether damages should be capped by judicial estoppel | No cap; inadvertent nondisclosure | Damages should be capped due to nondisclosure | No judicial estoppel cap at this stage; damages to be resolved by bankruptcy court |
Key Cases Cited
- Cannon-Stokes v. Potter, 453 F.3d 446 (7th Cir. 2006) (judicial estoppel often prevents double-recovery or concealment schemes)
- Cable v. Ivy Tech State College, 200 F.3d 467 (7th Cir. 1999) (trustee authority in bankruptcy; debtor limitations)
- New Hampshire v. Maine, 532 U.S. 742 (2001) (equitable doctrine; application within discretion)