Supreme Court to Hear Bankruptcy Case Over Claim Disclosures (1)

Oct. 20, 2025, 2:08 PM UTCUpdated: Oct. 20, 2025, 2:49 PM UTC

The US Supreme Court agreed to hear a case on whether a legal doctrine designed to prevent unfair advantage in litigation can be used to block someone who failed to disclose a civil claim in bankruptcy from pursuing the action.

The case stems from a dispute in the US Court of Appeals for the Fifth Circuit between Thomas Keathley and Buddy Ayers Construction Inc. The appeals court agreed in March with the US District Court for the Northern District of Mississippi that the doctrine of judicial estoppel prevented Keathley from continuing a lawsuit he hadn’t disclosed during his bankruptcy proceedings. ...

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