2019 Ohio 4752
Ohio Ct. App.2019Background
- Jane Moore filed Chapter 13 bankruptcy in April 2012; her plan was confirmed and later discharged in December 2015.
- In July 2014 Moore was involved in two automobile accidents and received small insurance payouts; she filed motions in the bankruptcy court to retain those proceeds.
- Moore did not list potential personal-injury or tort claims arising from the July 2014 accidents on her bankruptcy schedules.
- In July 2016 Moore sued multiple defendants (including the Hodges and Nationwide) for claims related to those accidents.
- Defendants moved for summary judgment arguing judicial estoppel based on Moore’s failure to disclose the claims in bankruptcy; the trial court granted summary judgment and dismissed Moore’s claims with prejudice.
- Moore appealed, arguing the omission was inadvertent and without motive to conceal; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether judicial estoppel bars Moore’s lawsuit | Moore: omission was inadvertent; no motive to conceal | Defendants: omission was a contrary position under oath, accepted by court; estoppel applies | Court: estoppel applies and bars the claims |
| Whether a debtor has a continuing duty to disclose potential claims | Moore: believed no duty to disclose these claims | Defendants: duty is continuing; causes of action are assets that must be scheduled | Court: duty is continuing; causes of action must be disclosed |
| Whether nondisclosure was inadvertent or in bad faith | Moore: lacked motive; mistake excused nondisclosure | Defendants: motive to conceal exists as a matter of law in Chapter 13; Moore knew facts and didn’t notify trustee | Court: Moore failed to show absence of bad faith; omission not mere inadvertence |
| Whether the trial court abused its discretion in applying judicial estoppel | Moore: trial court erred because omission was inadvertent | Defendants: record shows lack of affirmative notice to trustee/court; summary judgment proper | Court: no abuse of discretion; summary judgment affirmed |
Key Cases Cited
- Greer-Burger v. Temesi, 879 N.E.2d 174 (Ohio 2007) (establishes elements and purpose of judicial estoppel)
- White v. Wyndham Vacation Ownership, Inc., 617 F.3d 472 (6th Cir. 2010) (inadvertent nondisclosure standard; debtor bears burden to show absence of bad faith)
- In re Coastal Plains, Inc., 179 F.3d 197 (5th Cir. 1999) (a cause of action is an asset that must be scheduled; known claims must be disclosed)
- Eubanks v. CBSK Fin. Group, Inc., 385 F.3d 894 (6th Cir. 2004) (examples where notice to trustee avoided estoppel)
- Stephenson v. Malloy, 700 F.3d 265 (6th Cir. 2012) (absence of bad faith inquiry turns on affirmative steps to inform the bankruptcy court/ trustee)
- Advanced Analytics Labs, Inc. v. Kegler, Brown, Hill & Ritter, L.P.A., 773 N.E.2d 1081 (Ohio App. 2002) (explains judicial estoppel precluding inconsistent positions)