Decided: August 01, 1997

Debra Underwood is attractive of a synopsis judgment joined in favor of First Franklin Economic Company (“Very first Franklin”), Voyager Life insurance policies Company (“Voyager”), and you can Joe Seals, an employee out-of Basic Franklin. car title loan TX This case is transferred to which courtroom by best legal, pursuant to § 12-2-7(6), Ala.Password 1975.

Within the December 1992 plus in April 1993, Debra Underwood and her husband, Jesse Underwood, borrowed funds from Earliest Franklin. In the event of a demise, the credit life insurance policies would shell out entirely the debt owed so you’re able to First Franklin.

During the November 1993, the new Underwoods filed a volunteer petition to possess Part thirteen personal bankruptcy coverage, list within petition certain bills, for instance the a couple fund that have First Franklin. Jesse Underwood passed away inside the December 1994, just like the Underwoods remained during the bankruptcy. The latest case of bankruptcy plan try confirmed to your January seven, 1994.

To the January thirteen, 1995, Ms. Underwood filed a declare that have Basic Franklin into the credit life insurance policies proceeds from the two Voyager guidelines. Into the January twenty-six, 1995, Voyager given a couple monitors in order to Very first Franklin, investing masters regarding level of $step one,808, is applied for the Ms. Underwood’s loans that have Basic Financial. Ms. Underwood discovered that the 2 guidelines got paid down an amount much lower than the total amount who have came across this lady financing balance with Earliest Franklin. She telephoned Seals, a friend who was simply plus a worker out-of Basic Franklin, to determine as to why the financing life insurance policies continues don’t pay entirely the lady mortgage obligations with Basic Franklin. Seals advised Ms. Underwood that she had been given the proceeds she try permitted receive since she along with her spouse got registered to possess personal bankruptcy in November 1993. Seals subsequent threatened so you’re able to repossess the woman vehicles, since credit life insurance policies had not fully repaid the newest fund.

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Into the February 22, 1995, Ms. Underwood submitted an application getting a difficulty bankruptcy proceeding release, according to the lady husband’s dying. This lady application try provided of the case of bankruptcy legal on April 17, 1995. This new bankruptcy trustee is discharged may twenty two, 1995, plus the Chapter thirteen proceeding is closed.

To your January dos, 1996, Ms. Underwood recorded this up against Earliest Franklin, Voyager, and you will Seals, saying claims alleging scam, violation out-of package, and you will bad trust, all relating to the benefits reduced from the Voyager under this lady insurance rates guidelines. Very first Franklin, Voyager, and you can Seals gone to possess a synopsis view, arguing the “philosophy of judicial estoppel” blocked Ms. Underwood of getting their says. The brand new demo court supplied the brand new action and you may joined a view within the favor of your own defendants.

A movement to possess conclusion judgment could be granted if there is zero legitimate issue of issue facts while the moving group was eligible to a judgment as an issue of law. Hinkle v. Burgreen Contracting Co., 678 Very.2d 797 (Ala.Civ.Application.1996). If the swinging class tends to make a prima-facie indicating one to no genuine dilemma of issue fact can be acquired and that it try entitled in order to a judgment given that a question of rules, the burden shifts to your nonmovant to go give that have proof carrying out a bona-fide issue of point facts. Id. In order to overcome a properly served bottom line judgment motion, the brand new nonmovant need to introduce substantial proof starting a real problem of situation truth. Id.

A borrower into the a bankruptcy need certainly to reveal people lawsuits likely to surface in a great nonbankruptcy framework. Luna v. Dominion Financial out of Middle Tennessee, Inc., 631 Very.2d 917 (Ala.1993). The fresh philosophy out of judicial estoppel pertains to preclude a party out of incase a situation within the a legal proceeding contradictory that have the right position in earlier times asserted. Id. For this reason, the newest philosophy suppresses a debtor exactly who failed to divulge a state into the a bankruptcy out-of asserting the new claim in the good nonbankruptcy means.