362 S.W.3d 226
Tex. App.2012Background
- Norris sued Brookshire Grocery Company for a slip-and-fall; case filed Sept. 14, 2009.
- During the pendency Norris and her husband filed Chapter 7 bankruptcy in the Northern District of Texas.
- Norris did not list this lawsuit on the Personal Property schedule or in the “Statement of Financial Affairs.”
- She signed schedules and the financial affairs statement under penalty of perjury.
- Thirteen days after filing the bankruptcy petition Norris moved to dismiss it without prejudice to refile to payout creditors.
- Brookshire moved for summary judgment on grounds of judicial estoppel and lack of standing; the trial court granted the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Norris is judicially estopped from pursuing the claim | Norris argues no judicial acceptance occurred; omission was inadvertent | Brookshire asserts judicial estoppel due to nondisclosure in bankruptcy filing | Yes, reversal; no conclusive acceptance established (summary judgment improper) |
| Whether Norris has standing to sue given the bankruptcy dismissal | Dismissal revests assets in Norris; she retains standing | Estate retained the claim because undisposed assets remained with the estate | Yes, reversal; Norris has standing to prosecute the claim |
Key Cases Cited
- Cricket Communications, Inc. v. Trillium Indus., Inc., 235 S.W.3d 298 (Tex.App.-Dallas 2007) (standard for judicial estoppel in bankruptcy context)
- In re Coastal Plains, 179 F.3d 205 (5th Cir.1999) (elements and acceptance prong of judicial estoppel)
- Brown v. Swett & Crawford of Tex., Inc., 178 S.W.3d 373 (Tex.App.-Houston [1st Dist.] 2005) (no asset discharge context in bankruptcy)
- Horsley-Layman v. Adventist Health Sys./Sunbelt, Inc., 221 S.W.3d 802 (Tex.App.-Fort Worth 2007) (discharge information as basis for acceptance)
- Stallings v. Hussmann Corp., 447 F.3d 1041 (8th Cir.2006) (bankruptcy dismissal timing affecting estoppel)
- Kunica v. St. Jean Fin., Inc., 233 B.R. 46 (S.D.N.Y.1999) (context of discharge-like effect and assets)
- Matter of Petty, 848 F.2d 654 (5th Cir.1988) (restoration of property rights on revesting after dismissal)
- In re Waldrep, 20 B.R. 248 (Bankr.W.D.Tex.1982) (dismissal mechanics under 707(a))