Day on Torts
What happens when a personal injury plaintiff files a bankruptcy petition? What happens if that plaintiff fails to disclose in the bankruptcy petition that he has a personal injury claim that has not yet been filed? How does a bankruptcy court discharge affect the plaintiff’s rights to later file his personal injury claim?
The Tennessee Court of Appeals recently addressed these issues in the case of Reynolds v. Tognetti, No. W2010-00320-COA-R3-CV (Tenn. Ct. App. Mar.4, 2011). When the defendants learned that the now debt-discharged plaintiff was pursuing a tort claim for injuries received before he filed the bankruptcy petition, they filed a motion for summary judgment seeking dismissal of the claim on the theory of judicial estoppel.
Plaintiff responded to this motion by (1) petitioning the bankruptcy court to re-open the bankruptcy and (2) filing a motion to amend the complaint to add the bankruptcy trustee as a party plaintiff. The trustee then moved to intervene or be substituted as a party plaintiff.