The 5th U.S. Circuit Court of Appeals rarely addresses bankruptcy issues in en banc decisions. That’s why the full-court ruling won by Todd Hoodenpyle is a big deal for trustees faced with debtors who did not disclose to the bankruptcy court assets won in prior litigation.
In its Aug. 11 opinion in Diane G. Reed v. City of Arlington, the en banc court said judicial estoppel does not bar a “blameless” bankruptcy trustee from pursuing and recovering a judgment the debtor did not disclose during bankruptcy.
