Supreme Court Unanimously Revives Personal-Injury Suit Dismissed Over Bankruptcy Omission
The Supreme Court unanimously revived a man's personal-injury lawsuit in Keathley v. Buddy Ayers Construction after lower courts dismissed it because he failed to disclose the claim during bankruptcy proceedings. Justice Jackson wrote the opinion for the court.
The court said judges must consider the full circumstances of the omission rather than automatically assuming bad faith whenever a debtor knew about the claim and had a possible motive to conceal it. The ruling rejects an automatic presumption of bad faith in cases involving lawsuits left out of bankruptcy disclosures.
From the sources (3 posts)
@jonathanturleyWe have the first case today. It is written by Justice Jackson. It is unanimous in Keathley v. Buddy Ayers Construction.
@scotus_wire🚨 The Supreme Court unanimously revived a man's personal-injury lawsuit after lower courts threw it out because he failed to disclose the claim during bankruptcy proceedings.
@scotus_wireJustice Jackson, writing for a unanimous Court, said judges must consider the full circumstances of the omission rather than automatically assuming bad faith whenever a debtor knew about the claim and had a possible motive to conceal it.