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- Title
THE LAST ESTOP: WHY JUDICIAL ESTOPPEL SHOULD BE A COURT'S LAST RESORT FOR UNDISCLOSED LAWSUITS FROM BANKRUPTCY.
- Authors
WANG, CARYN
- Abstract
This Comment analyzes federal and state courts' application of judicial estoppel to a lawsuit that a consumer debtor failed to disclose in a prior bankruptcy case. Federal courts are split on most aspects of the judicial estoppel doctrine when applied to an undisclosed lawsuit from bankruptcy. Not all state courts recognize the doctrine of judicial estoppel, and those that do recognize it may apply the federal judicial estoppel doctrine or their own doctrine. Confusion throughout the federal circuits and state courts regarding judicial estoppel has harmed debtors, creditors, and the federal bankruptcy court system. This Comment argues that non-bankruptcy courts should not apply the judicial estoppel doctrine to undisclosed lawsuits from bankruptcy. Application of judicial estoppel in this context is both inequitable and contrary to provisions of the Bankruptcy Code. The continued effect of the automatic stay on property of the bankruptcy estate makes all non-bankruptcy court judgments dismissing undisclosed lawsuits void. Defendants who seek to assert judicial estoppel against an undisclosed lawsuit must first petition the bankruptcy court to reopen the debtor's bankruptcy case to request relief from the automatic stay. The bankruptcy court may then appoint a trustee who can either abandon the claim or pursue the claim for the benefit of the creditors. This approach is both equitable and conforms to the Bankruptcy Code. This Comment concludes that judicial estoppel should not and may not be applied to undisclosed lawsuits from bankruptcy until the bankruptcy court grants relief from the automatic stay.
- Subjects
UNITED States; JUDICIAL estoppel; BANKRUPTCY; DISCLOSURE laws; DEBTOR &; creditor; FEDERAL court decisions; ACTIONS &; defenses (Law); BANKRUPTCY courts; UNITED States. Bankruptcy
- Publication
Emory Law Journal, 2017, Vol 66, Issue 5, p1209
- ISSN
0094-4076
- Publication type
Article