Chicon v. Carter

This case concerns the applicability of the federal doctrine of judicial estoppel to a Georgia personal injury action filed by Chapter 13 bankruptcy debtors. In some circumstances, this doctrine prevents debtors from pursuing a personal injury claim not disclosed in their bankruptcy petition. See generally Wolfork v. Tackett, 273 Ga. 328 540 SE2d 611 2001.1 Georgia courts “apply federal law in order to give the proper effect to the judgment of the bankruptcy court.” Southmark Corp. v. Trotter, Smith & Jacobs, 212 Ga. App. 454, 455 442 SE2d 265 1994. In this case, however, the injury itself and the action occurred after confirmation of a plan providing for payment in full of all creditors, and the debtors were discharged after successfully completing their plan. The debtors gained no unfair advantage by nondisclosure, and the bankruptcy court determined that their personal injury claim did not form part of the bankruptcy estate. We therefore affirm the trial court’s denial of summary judgment to the defendant in the personal injury action.

The trial court correctly identified the relevant facts in this action. On July 6, 1995, Michael J. Carter and Rebecca Carter filed a Chapter 13 bankruptcy proceeding. On November 21, 1995, a plan was confirmed providing for payment of all their creditors in full. On April 18, 2000, the Carters were discharged having “fulfilled all requirements under the plan,” and the case was closed on May 10, 2000.