U.S.A. v. Gsdmidea City, L.L.C.

Citation:
Fifth Circuit; No.14-10999
Tag(s):
Ruling:
Chapter 13 debtor who filed False Claims Act litigation while in the third year of a confirmed five year Chapter 13 plan, was judicially estopped from pursuing those claims because he failed to disclose them to the bankruptcy court. While judicial estoppel is equitable in nature so that there is no per se rule estopping any party who fails to disclose the potential claim to the bankruptcy court, the debtor in this case :(1) took legally inconsistent positions; (2) a court accepted the prior position; and (3) the debtor did not act inadvertently.
Procedural context:
Appeal from the district court.
Facts:
Chapter 13 debtor failed to disclose a potential litigation claim while in the third year of a confirmed five year chapter 13 plan.
Judge(s):
Stewart, King and Elrod

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