66 East Main Street, 3rd Floor Little Falls, NJ 07424

Sexual Harrassment $ Non-Dischargeable in Bankruptcy

Share on facebook
Share on linkedin


In a case, the Bankruptcy Court ruled that the Plaintiff’s claim for sexual harassment was non-dischargeable.

What does this mean?     Where, as in a recent case, the discriminatory conduct is sexual harassment is clearly directed at the victim and the victim did not directly or indirectly invite such conduct, these facts are sufficient to establish the defendant acted specifically to cause harm.

Case Summary:

  • Debtor worked as a supervisor at U.S. Limo and was the supervisor of the victim.
  • Victim sued Debtor in court for sexual harassment, intention infliction of emotional distress, including hostile work environment and retaliation.
  • Judgment against the debtor and Limo Company awarded by jury: $450,000 and approximately $170,000 in attorneys’ fees and costs.
  • Any subjective ideas that the debtor may have entertained that his acts or statements were welcome were unreasonable and not just cause of excuse for his wrongful conduct.
  • After the award, naturally the Debtor tried to file for Bankruptcy to avoid paying this debt.
  • Victim filed an adversary complaint and was successful. This debt would not and could not be discharged in bankruptcy.

Bankruptcy was not set up to allow individuals to get out of a debt when he acted in a way to cause the injury.