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648 B.R. 119
Bankr. S.D. Florida
2023
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Background:

  • Debtor Victoria Calixto filed Chapter 13 on June 30, 2017; her third amended plan was confirmed April 30, 2018 and provided for vesting of estate property in the debtor.
  • Calixto completed plan payments, received a §1328(a) discharge on June 1, 2022, and the case closed on September 28, 2022.
  • On March 17, 2021 (post-confirmation, pre-discharge) Calixto alleges she slipped and fell at Gulfstream; she sued Gulfstream on June 30, 2022 but never amended her bankruptcy schedules to disclose the claim.
  • Gulfstream moved for summary judgment in state court, arguing lack of standing and judicial estoppel based on nondisclosure; Calixto moved to reopen her Chapter 13 case to file amended schedules.
  • The bankruptcy court found the post-confirmation tort claim was property of the estate under §1306(a)(1), agreed Eleventh Circuit law imposes a continuing duty to disclose, but held reopening was warranted because creditors were paid 100% and no creditor or trustee prejudice would result.
  • Court granted the motion to reopen, ordered Calixto to file amended schedules and a statement of financial affairs within 14 days, and directed the clerk to re-close the case after amendment.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether the post-confirmation negligence claim is property of the bankruptcy estate and had to be disclosed Calixto: claim is property under §1306(a)(1) and Eleventh Circuit imposes continuing duty to amend schedules; she seeks to comply by reopening Gulfstream: omission shows failure to disclose and supports estoppel; nondisclosure undermines litigation Court: claim was estate property under §1306; Eleventh Circuit requires continuing disclosure; debtor must amend schedules
Whether the case should be reopened to permit amendment and avoid state-court dismissal/estoppel Calixto: reopening is authorized by §350(b) and Rule 1009, will allow cure of a disclosure omission Gulfstream: reopening is an improper attempt to avoid adverse summary judgment and judicial estoppel Court: reopening granted — debtor will be allowed to amend because creditors not harmed and debtor benefits; reopening is equitable relief
Whether nondisclosure prejudiced creditors or affected trustee/estate administration Calixto: no prejudice — plan paid unsecured creditors 100% and trustee’s administration unaffected; debtor retains right to pursue claims in Chapter 13 Gulfstream: nondisclosure threatens integrity of bankruptcy process and could indicate manipulation Court: no creditor or trustee prejudice because full payment occurred; allowing amendment will not change estate distributions

Key Cases Cited

  • Robinson v. Tyson Foods, Inc., 595 F.3d 1269 (11th Cir. 2010) (recognizes continuing duty to disclose post-petition claims in Chapter 13)
  • Waldron v. Brown (In re Waldron), 536 F.3d 1239 (11th Cir. 2008) (same)
  • Ajaka v. BrooksAmerica Mortg. Corp., 453 F.3d 1339 (11th Cir. 2006) (same)
  • De Leon v. Comcar Indus., Inc., 321 F.3d 1289 (11th Cir. 2003) (same)
  • Slater v. United States Steel Corp., 871 F.3d 1174 (11th Cir. 2017) (permits liberal amendment and recognizes courts’ broad discretion to reopen cases to administer omitted assets)
  • Burnes v. Pemco Aeroplex, Inc., 291 F.3d 1282 (11th Cir. 2002) (dicta cited as a source for the continuing-duty line)
  • In re Coastal Plains, Inc., 179 F.3d 197 (5th Cir. 1999) (earlier dictum relied on in subsequent Eleventh Circuit discussion)
  • Martin v. Singletary, 965 F.2d 944 (11th Cir. 1992) (describes the prior-precedent rule governing circuit law)
  • United States v. Machado, 804 F.2d 1537 (11th Cir. 1986) (same)
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Case Details

Case Name: Victoria Calixto
Court Name: United States Bankruptcy Court, S.D. Florida.
Date Published: Feb 1, 2023
Citations: 648 B.R. 119; 17-18317
Docket Number: 17-18317
Court Abbreviation: Bankr. S.D. Florida
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    Victoria Calixto, 648 B.R. 119