In Re Norbert Majewski in Re Muriel Majewski, Debtors, William J. Leonard, Trustee-Appellant v. St. Rose Dominican Hospital

Opinion by Chief Judge SCHROEDER; Dissent by Judge REINHARDT ■

Debtor Norman Majewski incurred large medical expenses at the hospital where he was employed, and he did not pay them. After repayment negotiations failed, he told the hospital he intended to file for bankruptcy, and the hospital fired him before he did so. The trustee in Majewski’s bankruptcy, William Leonard, now contends that the firing violated the bankruptcy code provision barring termination of an individual who “is or has been” a bankruptcy debtor “solely because” the individual is or has been a debtor in bankruptcy. 11 U.S.C. § 525 (b).

The bankruptcy court dismissed the trustee’s claim against the hospital for violation of the statute, holding that the statute did not protect persons who had not yet filed for bankruptcy. The district court affirmed. We affirm as well.

The anti-discrimination provision of the bankruptcy code provides:

11 U.S.C. § 525 (b). In this appeal, Leonard contends that we should interpret the provision of subparagraph 1 liberally to apply to debtors before they file a bankruptcy petition.

In support of his argument, Leonard calls our attention to our cases interpreting the…

dissenting:

Norman Majewski was hospitalized at St. Rose Dominican Hospital, and incurred substantial medical expenses. He later went to work for St. Rose, but in three years was unable to earn enough to discharge his medical debt. He then advised his employer that he intended to file for bankruptcy — but before he could actually file a formal petition, he was summarily fired.

Despite Congressional intent to enact legislation banning precisely such retaliation, the majority’s opinion gives employers free license to punish an employee’s good-faith efforts to become a protected debtor. Indeed, under today’s holding, an employer may take advantage of a debtor’s honesty by eliminating his most likely means to financial recovery. The majority *657 adopts an unnaturally rigid and formalistic construction of the Bankruptcy Code that contravenes Congress’s clear intent: to insulate debtors from unfair employment practices directly tied to their attempts to get a “fresh start.” Accordingly, I respectfully dissent.

I

The question whether an employee must have won the race to file a formal bankruptcy petition before he is fired in retaliation for his insolvent status is one of first…

310 F.3d 653 In re Norbert MAJEWSKI; In re Muriel Majewski, Debtors, William J. Leonard, Trustee-Appellant, v. St. Rose Dominican Hospital, Appellee. No. 01-15544. United States Court of Appeals, Ninth Circuit. Argued and Submitted June 12, 2002. Filed November 13, 2002. Adam Segal and James R. Chamberlain, Schreck Brignone Godfrey, Las Vegas, NV, for the appellee. Randall Rumph, Rumph & Peyton, Las Vegas, NV, for the appellant. Appeal from the United States District Court for the District of Nevada; Philip M. Pro, District Judge, Presiding. D.C. No. CV-00-01045-PMP. Before: SCHROEDER, Chief Judge, D.W. NELSON and REINHARDT, Circuit Judges. Opinion by Chief Judge SCHROEDER; Dissent by Judge REINHARDT SCHROEDER, Chief Judge: 1 Debtor Norman Majewski incurred large medical expenses at the hospital where he was employed, and he did not pay them. After repayment negotiations failed, he told the hospital he intended to file for bankruptcy, and the hospital fired him before he did so. The trustee in Majewski's bankruptcy, William Leonard, now contends that the firing violated the bankruptcy code provision barring termination of an individual who "is or has been" a bankruptcy debtor…