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What is the basis for Judicial Estoppel in the 6th Circuit?

The test for judicial estoppel in Sixth Circuit was set forth in Stephenson v. Malloy, 700 F.3d 265 (6th Cir., Oct. 30, 2012).

The Stephenson court stated:

To support a finding of judicial estoppel, the court must find that:

(1) the debtor assumed a position that was contrary to the one that he asserted under oath in the bankruptcy proceedings;

(2) the bankruptcy court adopted the contrary position either as a preliminary matter or as part of a final disposition; and

(3) the omission did not result from mistake or inadvertence.

In determining whether the debtor’s conduct resulted from mistake or inadvertence, the court must consider whether:

(1) he lacked knowledge of the factual basis of the undisclosed claim;

(2) he had a motive for concealment; and

(3) the evidence indicated an absence of bad faith.