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Quin v. County of Kauai Dep't of transportation, No. 10-16000 (9th Cir. July 24, 2013)

Under the law of several federal circuits, employment-discrimination and other plaintiffs who omit their claims as estate assets in Chapter 7 bankruptcy are held to forfeit them under the legal theory of "judicial estoppel" - a rule that prevents litigants from taking inconsistent positions in successive proceedings. The Ninth Circuit, in a 2-1 decision, stakes an entirely new position, contrary to this consensus: provided that the claimant omitted the claim by mistake or inadvertence, and re-opens the bankruptcy proceeding to correct the omission, there will be no estoppel. A dissenting judge vigorously objects to this plaintiff-friendly rule.

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