Pikeville Energy Group, LLC v. Spradlin (In re Alma Energy, Inc.)

Summarized by J. Debbeler , Bricker Graydon LLP
15 years 6 months ago

Citation:

2010 FED App. 0008P

Tag(s):

6th Circuit

Ruling:

Through its failure to object to, or qualify statements made by the Debtor, that it would not be reimbursed for its financing of the Debtor's mining activities, appellant asserted that it would not seek reimbursement for its financing and was judicially estopped from directly contradicting that assertion by pursuing an administrative expense claim after conversion from a chapter 11 to a chapter 7.

Procedural context:

appeal from bankruptcy court order denying an application for allowance of an administrative expense claim

Facts:

Appellant funded the resumption of certain mining operations of the debtor when it was involved in a chapter 11 bankruptcy. Debtor did not seek bankrutpcy court approval for post-petition financing by Appellant, but Appellant expended funds in connection with the project. Multiple times representatives for the debtor advised the Court that Appellant did not intent to be paid back sums expended as administrative expenses. Counsel for Appellant was present when these assertions were made and the assertions were never corrected or qualified. The bankruptcy case converted from a chapter 11 to a chapter 7 and Appellant sought payment as an administrative claimant. The bankrutpcy court denied this request under the grounds of judicial estoppel. The appellate court upheld the bankrutpcy court's decision.

Judge(s):

Boswell, Fulton, McIvor

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!