The Importance Of Being Earnest About Bankruptcy

Law360, New York (November 8, 2011, 11:55 AM EST) -- A defense attorney who reached what she believed was an especially favorable settlement with an employment discrimination plaintiff may have paid out a “gift” to an individual who had no standing to litigate the suit from the outset, and no authority to enter into a settlement agreement. She learned this upon receiving a call from the trustee responsible for administering a Chapter 7 bankruptcy petition filed by the plaintiff, an action of which she was completely unaware.

She also learned from the trustee that the employment...
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