No. 25-6

Thomas Keathley v. Buddy Ayers Construction, Incorporated

Lower Court: Fifth Circuit
Docketed: 2025-07-01
Status: Granted
Type: Paid
Amici (6)Relisted (2) Experienced Counsel
Tags: bad-faith bankruptcy-law civil-claims judicial-estoppel judicial-integrity procedural-doctrine
Key Terms:
EmploymentDiscrimina JusticiabilityDoctri Jurisdiction
Latest Conference: 2025-10-17 (distributed 2 times)
Question Presented (AI Summary)

Whether the doctrine of judicial estoppel can be invoked to bar a plaintiff who fails to disclose a civil claim in bankruptcy filings from pursuing that claim simply because there is a potential motive for nondisclosure, regardless of whether there is evidence that the plaintiff in fact acted in bad faith

Question Presented (from Petition)

Judicial estoppel is an equitable doctrine designed “‘to protect the integrity of the judicial process’ by ‘prohibiting parties from deliberately changing positions’” to gain an unfair advantage. New Hampshire v. Maine , 532 U.S. 742, 749-50 (2001). The doctrine targets those who “‘deliberately’” mislead courts, not those whose inconsistent positions stem from “inadvertence or mistake.” Id. at 750, 753. Courts regularly apply judicial estoppel when a debtor-plaintiff pursues a claim he failed to disclose to the bankruptcy court. The Eleventh, Ninth, Seventh, Sixth, and Fourth Circuits require courts to look at the totality of the circumstances and find that a debtor subjectively intended to mislead the bankruptcy court before applying judicial estoppel to bar a claim outside of the bankruptcy. In stark contrast, the Fifth and Tenth Circuits have embraced a “rigid” and “unforgiving” judicial estoppel rule in the bankruptcy context that bars claims regardless of whether there is evidence that a plaintiff actually intended to mislead. App. 55a. In those circuits, a debtor’s failure to disclose a lawsuit to a bankruptcy court triggers judicial estoppel whenever the debtor knew the facts relevant to the undisclosed claim and had a potential motive for concealment—which is virtually always present in the bankruptcy context. The question presented is: Whether the doctrine of judicial estoppel can be invoked to bar a plaintiff who fails to disclose a civil claim in bankruptcy filings from pursuing that claim simply because there is a potential motive for nondisclosure, regardless of whether there is evidence that the plaintiff in fact acted in bad faith.

Docket Entries

2026-02-11
Record received from the United States Court of Appeals for the Fifth Circuit. The record is electronic and is available on PACER.
2026-02-04
Record requested from the United States Court of Appeals for the Fifth Circuit.
2026-01-30
SET FOR ARGUMENT on Tuesday, March 24, 2026.
2026-01-29
Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument filed.
2026-01-29
Motion of United States for leave to participate in oral argument and for divided argument submitted.
2026-01-27
Brief of respondent Buddy Ayers Constr., Inc. filed.
2026-01-27
Brief of Buddy Ayers Constr., Inc. submitted.
2026-01-09
Motion for a further extension of time within which to file respondent's brief on the merits is granted and the time is extended to and including January 27, 2026.
2026-01-02
Motion for a further extension of time to file respondent's brief on the merits filed.
2026-01-02
Motion of Buddy Ayers Constr., Inc. for an extension of time submitted.
2025-12-19
Amicus brief of National Consumer Bankruptcy Rights Center, National Consumer Law Center, and National Association of Consumer Bankruptcy Attorneys submitted.
2025-12-19
Amicus brief of National Association of Bankruptcy Trustees and American College of Bankruptcy submitted.
2025-12-19
Amicus brief of American Association for Justice submitted.
2025-12-19
Amicus brief of United States submitted.
2025-12-19
Brief amicus curiae of United States filed.
2025-12-19
Brief amici curiae of National Association of Bankruptcy Trustees, et al. filed.
2025-12-19
Brief amici curiae of National Consumer Bankruptcy Rights Center, et al. filed.
2025-12-19
Brief amicus curiae of American Association for Justice filed.
2025-12-19
Brief amicus curiae of United States supporting vacatur filed.
2025-12-12
Brief of Thomas Keathley submitted.
2025-12-12
Joint Appendix submitted.
2025-12-12
Brief of petitioner Thomas Keathley filed.
2025-12-12
Joint appendix filed.
2025-12-10
Amicus brief of The Honorable Melanie Cyganowski (Ret.), Joan Feeney (Ret.), Judith Fitzgerald (Ret.), Bruce Markell (Ret.), Eugene Wedoff (Ret.), and Professor Robert M. Lawless submitted.
2025-12-08
Brief amici curiae of The Honorable Melanie Cyganowski (Ret.), et al. filed.
2025-12-08
Amicus brief of The Honorable Melanie Cyganowski (Ret.), Joan Feeney (Ret.), Judith Fitzgerald (Ret.), Bruce Markell (Ret.), Eugene Wedoff (Ret.), and Professor Robert M. Lawless submitted.
2025-10-31
Motion to extend the time to file the briefs on the merits granted. The time to file the joint appendix and petitioner's brief on the merits is extended to and including December 12, 2025. The time to file respondent's brief on the merits is extended to and including January 20, 2026.
2025-10-23
Motion for an extension of time filed.
2025-10-23
Motion of Thomas Keathley for an extension of time submitted.
2025-10-20
Petition GRANTED.
2025-10-14
DISTRIBUTED for Conference of 10/17/2025.
2025-09-17
DISTRIBUTED for Conference of 10/10/2025.
2025-09-16
Reply of petitioner Thomas Keathley filed. (Distributed)
2025-09-16
Reply of Thomas Keathley submitted.
2025-09-02
Brief of respondent Buddy Ayers Constr., Inc., in opposition filed.
2025-09-02
Brief of respondent Buddy Ayers Constr., Inc. in opposition filed.
2025-09-02
Brief of Buddy Ayers Constr., Inc. in opposition submitted.
2025-07-14
Motion to extend the time to file a response is granted and the time is extended to and including September 2, 2025.
2025-07-11
Motion to extend the time to file a response from July 31, 2025 to September 2, 2025, submitted to The Clerk.
2025-07-11
Motion of Buddy Ayers Constr., Inc. for an extension of time submitted.
2025-06-27
Petition for a writ of certiorari filed. (Response due July 31, 2025)

Attorneys

American Association for Justice
Jeffrey Robert WhiteAmerican Association for Justice, Amicus
Jeffrey Robert WhiteAmerican Association for Justice, Amicus
Jeffrey Robert WhiteAmerican Association for Justice, Amicus
Buddy Ayers Constr., Inc.
David D. O'DonnellClayton O'Donnell, PLLC, Respondent
William McGinley JayGoodwin Procter, LLP, Respondent
William McGinley JayGoodwin Procter, LLP, Respondent
William McGinley JayGoodwin Procter, LLP, Respondent
David D. O'DonnellClayton O'Donnell, PLLC, Respondent
David D. O'DonnellClayton O'Donnell, PLLC, Respondent
National Association of Bankruptcy Trustees and American College of Bankruptcy
Catherine SteegeJenner and Block LLP, Amicus
Catherine SteegeJenner and Block LLP, Amicus
Catherine SteegeJenner and Block LLP, Amicus
National Consumer Bankruptcy Rights Center, National Consumer Law Center, and National Association of Consumer Bankruptcy Attorneys
James Justin HallerNational Consumer Bankruptcy Rights Center, Amicus
James Justin HallerNational Consumer Bankruptcy Rights Center, Amicus
James Justin HallerNational Consumer Bankruptcy Rights Center, Amicus
The Honorable Melanie Cyganowski (Ret.), Joan Feeney (Ret.), Judith Fitzgerald (Ret.), Bruce Markell (Ret.), Eugene Wedoff (Ret.), and Professor Robert M. Lawless
David R. KuneyDavid Kuney Law, Amicus
David R. KuneyDavid Kuney Law, Amicus
David R. KuneyDavid Kuney Law, Amicus
Thomas Keathley
Gregory George GarreLatham & Watkins LLP, Petitioner
Gregory George GarreLatham & Watkins LLP, Petitioner
Gregory George GarreLatham & Watkins LLP, Petitioner
United States
D. John SauerSolicitor General, Amicus
D. John SauerSolicitor General, Amicus
D. John SauerSolicitor General, Amicus