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Mann v. Hardaway

Because trustee took an inconsistent position from the previous action against insurer, had persuaded a court to accept the prior inconsistent position, and would derive a benefit and unfair advantage from having insurer defend the estate using a defense that trustee previously argued against, trustee was judicially estopped from raising the discharge defense.

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We granted this interlocutory appeal to address whether the trial court erred in denying summary judgment to defendant Theo Mann, trustee of the bankruptcy estate of Gina Darlene Parker. According to Mann, the trial court should have ruled that he was entitled to assert the defense of Parker’s discharge in bankruptcy and thereby bar the plaintiffs’ tort claims against the estate. Because we conclude that Mann was judicially estopped from raising the discharge defense, we affirm. The present case involves a tangled web of proceedings in federal bankruptcy court and state court. In September 2004, an automobile collision occurred between Gina Darlene Parker and Seles Hardaway. The following year, Parker filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Georgia. Parker did not list Hardaway as a creditor in her bankruptcy petition. The bankruptcy court thereafter granted Parker a discharge of her pre-petition debts and closed the bankruptcy case.

Hardaway and her husband subsequently filed a negligence suit stemming from the automobile accident in the State Court of Coweta County the “State Litigation”.1 Parker answered and asserted that the Hardaways’ tort claims were barred by her discharge in bankruptcy.

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