In a recently published decision, the Washington Court of Appeals reviewed a case involving a plaintiff’s personal injury claim and the effect of his failure to amend his Chapter 13 bankruptcy schedules to include the claim. In Arp v. Riley (Wash. Ct. App. Dec. 28, 2015), the superior court granted the defendants’ motion for summary judgment against the plaintiff on the basis of judicial estoppel. On appeal, the Washington court ultimately reversed and remanded that decision, allowing the plaintiff to proceed with his claim.
The Arp plaintiff had filed a Chapter 13 bankruptcy petition in 2008. After he paid off his Chapter 13 debt, the bankruptcy court closed his case in 2012. In October 2010, however, the plaintiff sustained serious injuries when an SUV rear-ended his stopped car. He suffered physical injuries as well as mental and emotional problems, including periodic memory loss. The plaintiff filed a personal injury action against the driver and the company for which the driver was working at the time. The defendants subsequently moved for summary judgment, contending that the plaintiff was barred from bringing his claim by judicial estoppel, since he did not report the claim to the bankruptcy trustee, and that he lacked standing. The trial court agreed, finding that the plaintiff’s personal injury claim is considered an asset of the bankruptcy estate, and the plaintiff had a duty to disclose the claim as such in his bankruptcy action.