Justia Bankruptcy Opinion Summaries

Abigail Fricke filed a Chapter 13 bankruptcy petition, which required her to disclose all her assets, including any lawsuits. Three years later, she filed a lawsuit against Red Lobster, alleging she was injured due to the restaurant's negligence. However, she did not update her bankruptcy asset schedule to include this lawsuit until after Red Lobster moved for summary judgment based on standing and judicial estoppel. The trial court denied Red Lobster's summary judgment motion, and the Court of Appeals affirmed.Red Lobster argued that Fricke lacked standing to sue because her personal injury claim was an asset that belonged to her bankruptcy estate rather than to her. The Indiana Supreme Court disagreed, stating that Fricke had standing to sue because she alleged a demonstrable injury allegedly caused by Red Lobster. The court clarified that while Fricke was improperly pursuing the claim on her own behalf rather than on behalf of the bankruptcy estate, this meant she was not the real party in interest, not that she lacked standing.Red Lobster also argued that judicial estoppel barred Fricke's claim. The court disagreed, stating that judicial estoppel did not apply when the bankruptcy court permits a plaintiff-debtor to cure their omission by amending their asset schedule to include a previously omitted lawsuit. The court found that Fricke did not mislead the bankruptcy court and did not prevail on a position in her bankruptcy proceedings that contradicts her claim in this state court negligence action. Therefore, her representations to the bankruptcy court did not judicially estop her from pursuing her personal injury claim against Red Lobster. The court affirmed the trial court's decision. View "Red Lobster Restaurants, LLC v. Fricke" on Justia Law