Court Opinion

ID: 9566924
Source: CourtListenerOpinion
Date Created: 2023-08-21 19:44:55.44676+00
Date Added: 2024-06-11T09:41:33.101062
License: Public Domain

CARLEY, Justice,
dissenting.
In this divorce action, Diane Benton (Wife) seeks alimony and an equitable division of the marital property. We granted Gary Benson (Husband) permission to file an interlocutory appeal to determine whether he was entitled to partial summary judgment on Wife’s claims, based upon the doctrine of federal judicial estoppel. Today, a majority of this Court holds that the trial court correctly denied the motion, concluding that a genuine issue of material fact remains as to whether Wife failed to disclose her divorce claims in her bankruptcy action and that, in any event, “application of federal judicial estoppel is still not warranted in this case.” (Majority opinion, page 470). I disagree with both conclusions and believe that, when the admissible and probative evidence of record is construed most favorably for Wife, Husband is entitled to partial summary judgment. Therefore, I dissent.
In 2003, Husband filed for divorce. Wife answered and counterclaimed, seeking an equitable division of property and alimony. In 2005, while the divorce action was still pending, Wife filed for bankruptcy. In connection with her bankruptcy action, she filed a “Statement of Financial Affairs,” in which she listed the pending divorce case as one of the three suits to which she was or had been a party in the preceding year. However, “Schedule B — Personal Property” asked her to list “[a]limony, maintenance, support, and property settlements to which [she] is or may be entitled. Give particulars.” Wife checked “None.” Based on her filings, which were made on penalty of perjury, Wife was granted a discharge by the bankruptcy court.
The federal doctrine of judicial estoppel precludes a bankruptcy debtor from pursuing a claim that he or she failed to include as an asset in the bankruptcy petition. Wolfork v. Tackett, 273 Ga. 328 (540 SE2d 611) (2001), disapproved on other grounds, Period Homes v. Wallick, 275 Ga. 486, 488 (1) (569 SE2d 502) (2002). “ ‘The primary purpose of the doctrine is not to protect the litigants, but to protect the integrity of the judiciary.’ [Cit.]” Cochran v. Emory Univ., 251 Ga. App. 737, 738 (555 SE2d 96) (2001).
A failure to reveal assets . . . operates as a denial that such assets exist, deprives the bankruptcy court of the full information it needs to evaluate and rule upon a bankruptcy petition, and deprives creditors of resources that may satisfy *473unpaid obligations. The application of the doctrine preserves the integrity of the judicial forum by not permitting a debtor to take inconsistent positions to manipulate the system. [Cit.]
Wolfork v. Tackett, supra at 328-329.
Notwithstanding Wife’s apparent failure to disclose to the bankruptcy court her pending divorce claims against Husband, the majority concludes that summary judgment was not authorized because she asserted, by way of rebuttal,
that she had made no omission, purposeful or otherwise, but had completely disclosed her finances inasmuch as any claims for relief in the divorce were inchoate, the value of which was undetermined, and indeed, could not be determined until the divorce was tried; consequently, her response to the bankruptcy petition’s Schedule B question was accurate. In fact, [Wife] submitted both her own affidavit and that of her bankruptcy attorney attesting to that effect.
Majority opinion, pp. 469-470. The error in relying on Wife’s assertions is that they are, at best, self-serving conclusions. “ ‘Ultimate or conclusory facts and conclusions of law, . . . cannot be utilized on a summary judgment motion. Similarly, the mere reargument of a party’s case or the denial of an opponent’s allegations will be disregarded.’ [Cits.]” Morton v. Stewart, 153 Ga. App. 636, 643 (2) (b) (266 SE2d 230) (1980). “It is axiomatic that ‘conclusory allegations by way of an affidavit. . . will not be sufficient to avoid summary judgment.’ [Cit.]” Collins v. West American Ins. Co., 186 Ga. App. 851, 852 (3) (368 SE2d 772) (1988). This Court’s determination of whether a genuine issue of material fact remains as to the applicability of the doctrine of federal judicial estoppel should be based upon a de novo review of the admissible and probative evidence of record, rather than reliance on a party’s conclusory assertions of its inapplicability.
Construing the evidence most favorably for Wife, she did disclose the existence of the pending divorce action in the “Statement of Financial Affairs.” Insofar as what claims she was pursuing in the divorce case are concerned, however, she expressly indicated in the Schedule B that there was no alimony, maintenance, support, or property settlement to which she was or may be entitled. Thus, Wife’s reliance on the mere disclosure of the existence of the then pending divorce action is not a basis for avoiding application of the doctrine of federal judicial estoppel. In fact, the disclosure that there was a pending divorce case, coupled with the express representation that there was no alimony or property settlement to which she was or may *474be entitled, appears to be even more misleading than simply omitting an asset. On its face, Wife’s bankruptcy filings indicate that, although there was a pending divorce action, she was not making any claim for alimony or property division in that proceeding.
The majority accepts without question Wife’s contention that her response of “None” on Schedule B was correct because, at that point, her divorce claims were inchoate. However, the schedule plainly asked her to list alimony and property settlements to which she was “or may be entitled. Give particulars.” That presumably would include the particulars of any and all claims which were then actually pending. “Neither [Wife’s] neglect in failing to read the schedule nor any neglect she may attribute to her attorney is a ground for relieving her of the duty to disclose the claims in the bankruptcy case. [Cit.]” Byrd v. JRC Towne Lake, 225 Ga. App. 506, 508 (484 SE2d 309) (1997).
Therefore, discounting any conclusory assertions to the contrary, the evidence of record shows that, although Wife did disclose her pending divorce action, she misled the bankruptcy court, intentionally or not, by failing to disclose her divorce claims against Husband. “Compliance with disclosure requirements is essential to maintaining a bankruptcy case. [Cits.]” Southmark Corp. v. Trotter, Smith & Jacobs, 212 Ga. App. 454, 455 (442 SE2d 265) (1994). By seeking a recovery of alimony and an equitable division of the marital property, Wife took an inconsistent position with the non-disclosure of those claims to the bankruptcy court. Wife’s failure to disclose the divorce claims deprived the bankruptcy court of all of the information it needed to evaluate her petition, and also potentially deprived her creditors of resources to satisfy her debts. Wolfork v. Tackett, supra. In opposition to Husband’s motion, Wife neither asserted nor showed that the assets that she did disclose were sufficient to meet her debts and, thus, that she derived no benefit as the result of her omission. Compare Period Homes v. Wallick, supra at 489 (2). Public policy favors the protection of Wife’s legal rights, but advancement of that policy should not extend to depriving Husband of a viable defense to claims against him. Whether asserted offensively or defensively, the rights of one spouse in a divorce action are not paramount over those of the other. On the evidence of record in this divorce case, Husband was entitled to partial summary judgment on Wife’s claims based upon the doctrine of federal judicial estoppel. See Wolfork v. Tackett, supra; Cochran v. Emory Univ., supra.
In reaching the contrary conclusion, the majority puts misplaced reliance on Wife’s successful amendment of her bankruptcy petition so as to include the omitted divorce claims. If, with the bankruptcy court’s approval, she had filed such an amendment prior to the ruling on the motion for partial summary judgment, the trial court would *475have been authorized to consider it as a factor in Husband’s invocation of the doctrine of federal judicial estoppel. See Clark v. Perino, 235 Ga. App. 444, 445 (1) (509 SE2d 707) (1998); Johnson v. Trust Co. Bank, 223 Ga. App. 650 (478 SE2d 629) (1996). As the majority concedes, however, she did not do so until some weeks after the trial court had already ruled on Husband’s motion and certified its order for immediate review. Her motion to amend was not granted by the bankruptcy court and she did not file her amended schedule until some weeks after this Court had granted Husband’s application for an interlocutory review of the trial court’s order. Under these circumstances, the amendment in the bankruptcy court was certainly not a factor in the trial court’s ruling on the motion for partial summary judgment, and is not a factor which this Court can consider in its review of that ruling. See Burgess v. Nabers, 122 Ga. App. 445, 447 (2) (177 SE2d 266) (1970).
Decided April 25, 2006.
Shaffer, Raymond & Dalton, Philip T. Raymond III, Susan D. Raymond, for appellant.
Stone & Chapman, Rice H. Stone, Susan Y. Middleton, for appellee.
Wife did file a motion asking this Court to amend the record on appeal so as to include the documents related to her amendment in the bankruptcy court. However, that motion does not cite any authority for this Court to amend the record in that regard, and we have never granted her permission to do so. “[I]t is obvious that the purported amendment, never having been considered by the trial court, has no place in the record on appeal.” Egerton v. Jolly, 133 Ga. App. 805, 807 (2) (212 SE2d 462) (1975). Based on the relevant and probative evidence that was considered by the trial court and that is properly in the record on appeal, Husband’s motion for partial summary judgment based on federal judicial estoppel should have been granted.