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939 F.3d 1279
11th Cir.
2019
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Background

  • 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)
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Case Details

Case Name: Glenn Lee Thompson v. Nancy J. Gargula
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Oct 7, 2019
Citations: 939 F.3d 1279; 18-11885
Docket Number: 18-11885
Court Abbreviation: 11th Cir.
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    Glenn Lee Thompson v. Nancy J. Gargula, 939 F.3d 1279