In re Farmer (98-71322)

The Court held a hearing on the Movants’ Motion to Reopen the case in order to contest the prior re-opening and move to strike the amended schedules. The Farmers had completed payments on their plan when they were involved in an automobile accident. They did not immediately amend their schedules to reflect the potential cause of action. After the case was closed, the Farmers reopened the case and added the lawsuit to their schedules. The Movants, the defendants in the personal injury lawsuit, asserted judicially estoppel. The Court found that judicial estoppel did not apply because the Farmers never asserted inconsistent positions and because the Farmers’ plan was complete at the time of the injury. In addition, the cause of action was not property of the estate under Telfair v. First Union Mortgage Corp., 216 F.3d 1333 (11th Cir. 2000) and 11 U.S.C. §1329(a), because cause of action arose after the confirmation and completion of the plan.

Monday, April 18, 2005