Representation of Employer in Fair Labor Standard Act Litigation

In a matter of first impression before the United State District Court for Delaware, we successfully eliminated a plaintiff’s entitlement to damages in a wage-and-hour lawsuit, establishing that the plaintiff was judicially estopped because he had made inconsistent representations in a contemporaneous bankruptcy proceeding.  While the ruling permitted the bankruptcy trustee to recover in the plaintiff’s stead, it capped the maximum damages the trustee could recover at less than one percent of the plaintiff’s demand.