Justia Bankruptcy Opinion Summaries

Plaintiffs filed a personal injury suit against defendants for alleged workplace injuries to Helen Allen. Defendants argued that the suit should be barred by judicial estoppel because plaintiffs failed to disclose the personal injury claim during their concurrent Chapter 13 bankruptcy proceeding.The district court granted defendants' motion for summary judgment. The court concluded that its precedent clearly establishes that the district court did not abuse its discretion when it dismissed plaintiffs’ claims based on judicial estoppel and provided a trustee with the opportunity to “pursue for the benefit of creditors a judgment or cause of action that the debtor fails to disclose in bankruptcy.” The court modified the district court’s judgment to clarify that the district court may reopen the present case and substitute a Chapter 7 trustee for plaintiffs if the trustee decides to pursue the claim within a reasonable period of time. Accordingly, the court affirmed the judgment as modified. View "Allen v. C & H Distributors, L.L.C.," on Justia Law

This case arose out of an alleged power of attorney agreement between appellant and KSRP, which was signed by appellee, an officer and 50% owner of PYK, the general partner of KSRP. On appeal, appellant challenged the district court's order and judgment dismissing his claims against appellee, arguing that the bankruptcy court and district court lacked "related to" jurisdiction under 28 U.S.C. 1331 because appellee's cross-claims for indemnity and contribution against KSRP had no possibility of succeeding. The court concluded that the pleadings are sufficient to support "related to" jurisdiction. In this case, appellee's allegations in his notice of removal and the facts alleged in appellant's pleadings in state court sufficiently show that appellee's contractual indemnity claim against KSRP was not immaterial and made solely for the purpose of obtaining jurisdiction or wholly insubstantial and frivolous. Accordingly, the court affirmed the judgment. View "Collins v. Sidharthan" on Justia Law

After debtor, a successful surgeon, died during the pendency of his bankruptcy case, debtor's estranged spouse and debtor's personal representative claimed various allowances and exemptions under the Texas Estates Code in debtor’s bankruptcy case pursuant to Bankruptcy Code 501, 502, and 522. The bankruptcy court ruled that neither was entitled to relief. The court dismissed the appeal to the extent that debtor's spouse seeks a probate allowance to be paid out of debtor's bankruptcy estate because the court lacked appellate jurisdiction to decide this issue. The court does not review bankruptcy court orders that have not been reviewed by the district court. The court affirmed in all other respects. View "Brown v. Sommers" on Justia Law