Supreme Court Narrows Use of Judicial Estoppel in Bankruptcy Cases
In Keathley v. Buddy Ayers Construction, Inc., the U.S. Supreme Court unanimously ruled that courts must take a totality-of-the-circumstances approach when determining whether a debtor’s failure to disclose a legal claim during bankruptcy was inadvertent. The Court rejected the Fifth Circuit’s rigid two-part test, which focused only on whether the debtor knew about the claim […]