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Failure to Disclose Assets in Bankruptcy Proceedings Can Cause Additional Pain and Suffering

Motor Vehicle Litigation / January 10, 2019

On January 3, 2019, the Michigan Court of Appeals issued an unpublished opinion reiterating the importance of judicial estoppel as an equitable doctrine. In this case, Plaintiff failed to disclose her third-party motor vehicle litigation claim as a potential asset during bankruptcy proceedings. Defendants filed a Motion for Summary Disposition arguing that this failure to disclose the asset in her bankruptcy proceedings should bar her third-party auto claim. The trial court denied Defendants’ motion. However, on appeal, the Michigan Court of Appeals reversed the trial court decision and outlined the proper analysis for determining if judicial estoppel is appropriate.

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