PDTW, LLC v. Kring & Chung, LLP CA4/3
In 2015, Paula Thomas and her company, PDTW, LLC (PDTW), retained the law firm of Kring & Chung, LLP (Kring & Chung) to file a lawsuit for various employment and business claims. While that lawsuit was pending, PDTW filed for chapter 7 bankruptcy. PDTW did not disclose any potential claims against Kring & Chung on its initial bankruptcy schedule of assets, nor did it ever supplement its schedules to add those claims.
In the present action, PDTW attempts to sue Kring & Chung for legal malpractice, fraud, and related claims arising out of its handling of the underlying action. The trial court sustained Kring & Chung’s demurrer to PDTW’s complaint, finding, among other things, that PDTW’s failure to disclose the present claims in the bankruptcy proceedings judicially estopped it from pursuing the subject action. We agree and therefore affirm the judgment.
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