MG+M Obtains Complete Dismissal Of An Asbestos Personal Injury Action Based On The Doctrine Of Judicial Estoppel

May 03, 2017

MG+M obtained a complete dismissal of an asbestos personal injury action filed in the United States District Court for the Southern District of New York on April 28, 2017 on behalf of a Fortune 100 company.

The plaintiffs in the case filed their lawsuit at the same time they had a Chapter 13 personal bankruptcy petition pending. However, the plaintiffs never amended their bankruptcy schedules disclosing their personal injury claims to the Bankruptcy Trustee, and the Bankruptcy Court issued an order discharging their debts. Accordingly, MG+M, in concert with its client’s co-defendants, successfully argued that the plaintiffs’ personal injury claims had to be judicially estopped as a matter of law because the plaintiffs took inconsistent positions before the Bankruptcy Court and the Southern District.

On the one hand, the plaintiffs, by not fulfilling their statutory obligation to amend their schedule of assets in the bankruptcy case, declared that they had no foreseeable assets owing to them. On the other hand, the plaintiffs claimed in their personal injury action that they were entitled to monetary damages as a result of their previous asbestos exposure.

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