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Latin v. Perot Systems Corp.

Citations: 336 Fed. Appx. 708; 336 F. App'x 708; 2009 U.S. App. LEXIS 14448; 2009 WL 2010728Docket: No. 08-15139

Court: Court of Appeals for the Ninth Circuit; July 1, 2009; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by an individual against a summary judgment favoring Perot Systems Corporation and Unum Life Insurance Company of America. The appellant sought to assert an ERISA claim which was not disclosed in his previous bankruptcy proceedings. The district court applied the doctrine of judicial estoppel, barring the appellant from pursuing the claim on the grounds that it contradicted his earlier assertion of having no outstanding claims during his bankruptcy. The court noted that the bankruptcy court had relied on his disclosure to discharge his debts, and allowing the ERISA claim would unfairly disadvantage Unum, a listed creditor. The decision by the district court to enforce judicial estoppel was affirmed, concluding that the appellant's omission prevented Unum from potentially recovering funds or offsetting any recovery. This ruling was not published and holds no precedential value beyond the specified Ninth Circuit rules.

Legal Issues Addressed

Inconsistent Position in Legal Proceedings

Application: The appellant's failure to disclose the ERISA claim in the bankruptcy petition was deemed inconsistent with his current position, warranting the application of judicial estoppel.

Reasoning: Latin's claim against Unum is inconsistent with his bankruptcy petition, where he asserted he had no outstanding claims.

Judicial Estoppel in Bankruptcy Proceedings

Application: Judicial estoppel was applied to prevent the appellant from pursuing an ERISA claim that was not disclosed in a prior bankruptcy petition, thereby avoiding inconsistent positions in different legal proceedings.

Reasoning: Judicial estoppel prevents a party from asserting a position that contradicts a previous stance taken in a legal proceeding.

Reliance by Bankruptcy Court

Application: The court found that the bankruptcy court's decision to discharge debts was based on the appellant's assertion of having no outstanding claims, justifying the application of judicial estoppel.

Reasoning: The bankruptcy court relied on this inconsistent position when granting Latin a discharge of debts.

Unfair Advantage and Judicial Estoppel

Application: Allowing the appellant to pursue the undisclosed ERISA claim would provide an unfair advantage by preventing Unum from contesting the claim's impact on his bankruptcy discharge.

Reasoning: Allowing Latin to pursue the ERISA claim would give him an unfair advantage by denying Unum the chance to contest the claim's impact on his discharge.