Posted by NCBRC - January 10th, 2019
The district court did not abuse its discretion in dismissing the plaintiff’s case under the False Claims Act where he had failed to disclose the cause of action in his pending chapter 13 case. Bias v. Tangipahoa Parish School Board, No. 17-30982 (5th Cir. March 22, 2019) (withdrawing prior opinion) (unpublished, per curiam opinion).
After his chapter 13 case was confirmed in bankruptcy court, debtor, Ronald Bias, learned that his retirement from the Marine Corps had mistakenly been permitted two years earlier than it should have been. The Marine Corps offered him the option of continuing his teaching position in the Junior Reserve Officer’s Training Corp (JROTC), Tangipahoa Parish School District, as a way of fulfilling his pre-retirement obligations. While teaching, Mr. Bias learned of a fellow marine and teacher at the school whom he believed was submitting false reimbursement requests to the Marine Corps. After he reported his suspicions, Mr. Bias was offered the opportunity to retire or be transferred to a new school district. Read More
Posted by NCBRC - October 18th, 2018
When addressing judicial estoppel, courts may no longer apply a presumption of motive to conceal, but must look at the facts and circumstances behind a bankruptcy debtor’s failure to disclose his civil action in the bankruptcy proceeding. Silva v. Pro Transport Inc., No. 17-12744 (11th Cir. Aug. 10, 2018).
After Julio Antonio Silva’s chapter 13 bankruptcy plan was confirmed, he filed an FLSA claim in district court against his employers for failure to pay overtime. He did not tell his civil counsel about his bankruptcy nor did he immediately inform the bankruptcy court of the district court case. The district court granted the employer’s motion for summary judgment on the basis of judicial estoppel, and awarded over $50,000 to the employer in sanctions and attorney fees. Mr. Silva appealed the sanctions award. Read More
Posted by NCBRC - September 26th, 2018
A private loan in excess of the cost of attendance is not subject to exception from discharge under section 523(a)(8)(A)(ii). McDaniel v. Navient Solutions, No. 09-37450, Adv. Proc. No. 17-1274 (Bankr. D. Colo. Sept. 2018).
In their confirmed chapter 13 plan, Byron and Laura McDaniel treated their student loans, including those held by Navient Solutions, as unsecured Class Four claims to be deferred until after discharge. Upon completion of their plan, the McDaniels obtained discharge, but later moved to reopen. They filed an adversary proceeding seeking a declaration that a particular private loan held by Navient was not excepted from discharge. They also sought a finding that Navient violated the discharge injunction by collecting on that private loan post-discharge. Navient moved to dismiss the adversary proceeding. Read More
Posted by NCBRC - September 20th, 2018
The chapter 13 debtor was judicially estopped from challenging the foreclosure sale of his property as a violation of the automatic stay because he failed to disclose his ownership interest in the property. Fornesa v. Fifth Third Mortgage Co., No. 17-20324 (5th Cir. July 27, 2018). Read More
Posted by NCBRC - April 4th, 2018
The district court abused its discretion when it mechanically applied judicial estoppel to bar the plaintiff’s personal injury lawsuit after he and his wife successfully completed their 100% plan. Clark v. Advanced Composites Grp., No. 17-1727 (2d Cir. March 30, 2018).
Michele and John Clark had one more payment due on their five-year chapter 13 plan when Mr. Clark was diagnosed with mesothelioma which he believed to have been caused by exposure to asbestos through his service with the United States Air Force and in his subsequent private sector work. The Clarks notified their bankruptcy counsel of his diagnosis and their intention to commence litigation, but their counsel did not notify the bankruptcy court. The Clarks successfully completed their plan payments. One year later, and one week prior to formal discharge and closure of their bankruptcy, Mr. Clark filed a personal injury complaint against Boeing and numerous other corporations. The case was removed to district court. Boeing then moved to dismiss the lawsuit on grounds of judicial estoppel. Finding that the Clarks’ failure to disclose Mr. Clark’s diagnosis to the bankruptcy court amounted to a false representation which the bankruptcy court acted upon by discharging them, the district court granted the motion. Mr. Clark died during the pendency of the appeal. Read More
Posted by NCBRC - September 19th, 2017
Whether a debtor intends to make a mockery of the judicial system when she fails to disclose a civil lawsuit in her bankruptcy schedules requires consideration of a totality of facts and circumstances. Slater v. U.S. Steel Corp., No. 12- 15548 (11th Cir. Sept. 18, 2017).
When she filed her chapter 7 bankruptcy petition, Sandra Slater failed to disclose her civil lawsuit for retaliation and discrimination in her employment that was pending in district court. In fact, in her Schedule B and in the Statement of Financial Affairs she affirmatively stated that she had no contingent claims or pending lawsuits. After her bankruptcy was fully administrated, U.S. Steel moved for summary judgment in the district court seeking a finding that her pending claims for employment discrimination should be barred by the doctrine of judicial estoppel due to her failure to disclose them in her bankruptcy. The next day, explaining that she had misunderstood the questions in the bankruptcy filings, Ms. Slater amended her bankruptcy documents to list the lawsuit. The bankruptcy court granted the trustee’s motion for an order to employ Ms. Slater’s current district court lawyers (who were different from her bankruptcy lawyer) so they could continue to pursue the employment lawsuit. Ms. Slater then converted from chapter 7 to chapter 13 but failed to make all required contributions to the plan and her case was ultimately dismissed. Read More
Posted by NCBRC - December 1st, 2016
NCBRC has filed an amicus brief in the Eleventh Circuit on behalf of the NACBA membership to address the issue of that circuit’s approach to judicial estoppel. Slater v. U.S. Steel, No. 12-15568 (filed October 24, 2016).
Twenty one months after filing an employment discrimination suit in federal district court against her former employer, U.S. Steel, Sandra Slater filed for bankruptcy. (The original case was filed under chapter 7 and later converted to chapter 13). She failed to list the pending federal case in her bankruptcy schedules. U.S. Steel then moved the district court to bar the discrimination suit based on the doctrine of judicial estoppel. The district court granted the motion and Ms. Slater appealed. Read More
Posted by NCBRC - May 24th, 2016
Issue preclusion provided a short-cut to finding that the debtor’s liability for the costs and penalties incurred under state consumer protection laws was nondischargeable in bankruptcy under section 523(a)(6). O’Rorke v. Porcaro (In re Porcaro), No. 15-26 (B.A.P. 1st Cir. Feb. 3, 2016). Read More
Posted by NCBRC - February 25th, 2016
Applying little analysis beyond recitation of bullet points, the Eighth Circuit found that bankruptcy debtors have an obligation to report lawsuits filed during the life of the chapter 13 plan and that failure to do so justifies application of judicial estoppel. Jones v. Bob Evans Farms, Inc, No. 15-2068 (8th Cir. Jan. 26, 2016). Read More
Posted by NCBRC - July 21st, 2014
In the context of judicial estoppel, courts are divided on the issue of whether, for purposes of analyzing the defense of mistake or inadvertence, a plaintiff’s subjective intent matters. Several recent cases touch on this issue. Read More
