939 F.3d 1279
11th Cir.2019Background
- Glenn and Heike Thompson filed for bankruptcy (Chapter 13 → Chapter 11 → Chapter 7); Nattco, their company, filed Chapter 11 during the same period.
- A former Nattco employee submitted fraud allegations to the Trustee (Oct 2013–Jan 2014), prompting an investigation.
- The bankruptcy court granted the Thompsons a Chapter 7 discharge on Feb. 26, 2014.
- The Trustee filed an adversary complaint to revoke the discharge (Feb. 25, 2015), alleging fraudulent financial reports and failure to report or surrender estate property.
- The bankruptcy court held that § 727(d)(1) was inapplicable because the Trustee had pre-discharge knowledge, but § 727(d)(2) contains no lack-of-knowledge requirement and supported revocation; the district court affirmed and the Eleventh Circuit heard the appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 727(d)(1)’s “did not know” lack-of-knowledge requirement must be read into § 727(d)(2) | Read into (d)(2) based on prior Bankruptcy Act practice, congressional history, and estoppel/laches principles — so revocation barred if Trustee had pre-discharge knowledge | Statutory text is dispositive: Congress included the lack-of-knowledge phrase in (d)(1) but omitted it from (d)(2); courts must not import omitted language | Court refused to rewrite statute; declined to import lack-of-knowledge into (d)(2) and affirmed revocation |
| Whether Trustee disclosure duties under § 704 require a lack-of-knowledge bar to revocation | § 704 duties (to disclose trustee knowledge) mean Trustee’s pre-discharge knowledge should preclude later revocation | § 704 imposes duties but does not alter § 727(d)(2)’s plain terms; disclosure duties do not create a substantive bar to revocation | Court found no conflict and rejected argument; § 727(d)(2) governs independently |
Key Cases Cited
- Keene Corp. v. United States, 508 U.S. 200 (1993) (refusing to read omitted language into adjacent statutory provisions; presumption of purposeful omission)
- Russello v. United States, 464 U.S. 16 (1983) (same canon: inclusion in one provision and exclusion in another signals congressional intent)
- Villareal v. R.J. Reynolds Tobacco Co., 839 F.3d 958 (11th Cir. 2016) (when statute is unambiguous, courts end inquiry at the text)
- Conn. Nat’l Bank v. Germain, 503 U.S. 249 (1992) (statutory language controls; no need to consult legislative history when text is clear)
- Pollitzer v. Gebhardt, 860 F.3d 1334 (11th Cir. 2017) (principle that courts should not read omitted language into a statute)
