Court Opinion

ID: 9633082
Source: CourtListenerOpinion
Date Created: 2023-08-22 11:33:24.192905+00
Date Added: 2024-06-11T18:08:28.846507
License: Public Domain

CHEW, Chief Justice,
dissenting.
The majority opinion follows the “shear plethora of cases in the Fifth Circuit upholding summary judgments on virtually identical facts.” I must respectfully dissent because I believe those authorities to be an unconscionable insistence on form that enforces a penalty disproportionate to the primary obligation of a debtor in bankruptcy.
11 U.S.C. § 521 provides that: “[t]he debtor shall — (1) file a list of creditors, and unless the court orders otherwise, a schedule of assets and liabilities, a schedule of current income and current expenditures, and a statement of the debtor’s financial affairs.” The law suit here was reported in the statement of financial affairs, but initially omitted in the schedule of assets and liabilities.
“Official Form 6 — Schedules” provides an alphabet of fill-in-the-blank schedules, — A through J. The initial omission in this case occurred in “Schedule B-Personal Property” which itemizes 35 types of personal property. As a “contingent and unliquidated claim” the appellant’s law suit apparently should have been listed under item “18. Equitable or future interests, life estates, and rights or powers exercisable for the benefit of the debtor other than those listed in Schedule of Real Property.”
It was not listed in the initial filing. It appears that the amended Schedule B listed the law suit under item “18 — Other liquidated debts owing debtor including tax refunds.”
“Official Form 7 — Statement of Financial Affairs” is a series of 25 fill-in-the blank questions. Question 4 is titled: “Suits and administrative proceedings, executions, garnishments and attachments[.]” In the initial bankruptcy petition, the appellants disclosed the pending lawsuit in that question, providing the caption and style of the suit, nature, court and status.
I simply do not believe that an omission on a fill-in-the blank government form, whether a bankruptcy form, a naturalization petition or a liquor license application, standing alone, can be the basis, as a matter of law, of a prior inconsistent position that would support judicial estoppel. It also seems to me that, in fact, there was no omission in their basic reporting obligation as debtors under 11 U.S.C. § 521; the law suit was listed in the Statement of Financial Affairs. Finally, as I understand the purpose of judicial estoppel, it is to protect the integrity of the judicial system and not the litigants. I find nothing in the facts of this case to suggest that the integrity of the judicial system, specifically the bankruptcy case, was breached in any material way.
I respectfully dissent.