October Term 2025 · Docket 25-6
When Does Judicial Estoppel Apply to a Bankruptcy Debtor Who Left an Asset Off a Form?
Keathley says the Fifth Circuit applies too strict a presumption of intent when a debtor omits an asset. Buddy Ayers Construction defends the ruling, saying finality and court integrity justify it. The United States, as a friend of the court, asks the Court to vacate and send the case back for a broader fairness review.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court order was verified.
- — An official Court opinion was verified.
- — An official Court opinion was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Gregory G. Garre appeared for Keathley. Frederick Liu appeared for the United States as a friend of the court supporting vacatur. William M. Jay appeared for Buddy Ayers Construction. Keathley asked the Court to vacate and remand, limiting its argument to bankruptcy.
This was the only argument session in the approved record.
The challenger asked the Court to vacate and remand, limiting its argument to bankruptcy. Its reasoning centered on intent to adopt inconsistent positions, honest mistakes, and the debtor's own intent rather than the lawyer's.
The United States asked the Court to vacate and remand. Its reasoning was that the Fifth Circuit narrowed inadvertence and ignored a broader equitable balance.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 13, lines 21-29 — Transcript, file page 13, lines 21-29
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 19, lines 11-39 — Transcript, file page 19, lines 11-39
- Official Supreme Court Transcript — file page 21, lines 43-49 — Transcript, file page 21, lines 43-49
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 24, lines 15-33 — Transcript, file page 24, lines 15-33
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 25, lines 47-49 — Transcript, file page 25, lines 47-49
- Official Supreme Court Transcript — file page 33, lines 27-37 — Transcript, file page 33, lines 27-37
- Official Supreme Court Transcript — file page 35, lines 51-11 — Transcript, file page 35, lines 51-11
- Official Supreme Court Transcript — file page 37, lines 31-47 — Transcript, file page 37, lines 31-47
- Official Supreme Court Transcript — file page 37, lines 49-9 — Transcript, file page 37, lines 49-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 57, lines 49-35 — Transcript, file page 57, lines 49-35
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 43-33 — Transcript, file page 58, lines 43-33
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 61, lines 17-31 — Transcript, file page 61, lines 17-31
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 68, lines 19-23 — Transcript, file page 68, lines 19-23
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 29-7 — Transcript, file page 7, lines 29-7
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
A citizen's guide to the whole case
What this case is about
The Court heard argument on March 24, 2026, in Washington, D. C. Gregory G. Garre argued for Keathley. Frederick Liu argued for the United States, supporting vacatur. William M. Jay argued for Buddy Ayers Construction. The Court has not announced a decision. A justice's question is not a vote.
Official sources for this section
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 13, lines 21-29 — Transcript, file page 13, lines 21-29
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 19, lines 11-39 — Transcript, file page 19, lines 11-39
- Official Supreme Court Transcript — file page 21, lines 43-49 — Transcript, file page 21, lines 43-49
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 24, lines 15-33 — Transcript, file page 24, lines 15-33
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 25, lines 47-49 — Transcript, file page 25, lines 47-49
- Official Supreme Court Transcript — file page 33, lines 27-37 — Transcript, file page 33, lines 27-37
- Official Supreme Court Transcript — file page 35, lines 51-11 — Transcript, file page 35, lines 51-11
- Official Supreme Court Transcript — file page 37, lines 31-47 — Transcript, file page 37, lines 31-47
- Official Supreme Court Transcript — file page 37, lines 49-9 — Transcript, file page 37, lines 49-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 57, lines 49-35 — Transcript, file page 57, lines 49-35
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 43-33 — Transcript, file page 58, lines 43-33
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 61, lines 17-31 — Transcript, file page 61, lines 17-31
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 68, lines 19-23 — Transcript, file page 68, lines 19-23
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 29-7 — Transcript, file page 7, lines 29-7
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
How the case got here
The Fifth Circuit decided this dispute first. Keathley says that court applies a conclusive presumption of intent when a debtor knows about an asset and has a motive to hide it. The United States describes the ruling differently: it says the Fifth Circuit narrowed the idea of an honest mistake and ignored a broader balancing of fairness factors.
Official sources for this section
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
What each side wants
Keathley asks the Court to vacate the ruling and send the case back for a fresh look. It argues that intent to adopt inconsistent positions is key, that misleading the court is the doctrine's heartland, and that other factors may be considered. It says intent to mislead is not strictly required.
Keathley also says there should be no strong presumption of intent here. It points to confusing forms and many unsophisticated debtors. It says the bankruptcy court's own role and actions should count as an important factor. It says there is no practical difference between knowing and intentional inconsistency. It accepts a narrow vacatur and confines its argument to bankruptcy cases.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
What each side says
Keathley argues that intent to adopt inconsistent positions is the key thing. It says misleading the court is the heartland of the doctrine, and other factors may be considered. It also says intent to mislead is not strictly required, in its view. It adds that there should be no strong presumption of intent here.
The United States supports a narrower path: vacate and remand so the lower court can apply a broader equitable balance.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
What the justices asked
The justices pressed both sides on how intent should be figured out. Justice Alito asked whether a duty to disclose plus a financial interest should create a presumption of intent. Justice Jackson asked how to treat an intentional omission that was not aimed at misleading the court.
Official sources for this section
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
Why it matters
The challenger lists factors courts could weigh: debtor testimony, sophistication, timing, notice to counsel, creditor objections, creditor impact, and bankruptcy findings. It says honest mistakes should generally preclude estoppel, and it accepts a narrow vacatur.
Official sources for this section
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 13, lines 21-29 — Transcript, file page 13, lines 21-29
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 19, lines 11-39 — Transcript, file page 19, lines 11-39
- Official Supreme Court Transcript — file page 21, lines 43-49 — Transcript, file page 21, lines 43-49
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 24, lines 15-33 — Transcript, file page 24, lines 15-33
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 25, lines 47-49 — Transcript, file page 25, lines 47-49
- Official Supreme Court Transcript — file page 33, lines 27-37 — Transcript, file page 33, lines 27-37
- Official Supreme Court Transcript — file page 35, lines 51-11 — Transcript, file page 35, lines 51-11
- Official Supreme Court Transcript — file page 37, lines 31-47 — Transcript, file page 37, lines 31-47
- Official Supreme Court Transcript — file page 37, lines 49-9 — Transcript, file page 37, lines 49-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 57, lines 49-35 — Transcript, file page 57, lines 49-35
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 43-33 — Transcript, file page 58, lines 43-33
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 61, lines 17-31 — Transcript, file page 61, lines 17-31
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 68, lines 19-23 — Transcript, file page 68, lines 19-23
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 29-7 — Transcript, file page 7, lines 29-7
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
What the Court decided
In deciding whether a debtor's failure to disclose a lawsuit claim in bankruptcy was an inadvertent mistake. Courts must weigh the total circumstances, not just knowledge and possible motive to hide it.
The Supreme Court vacated the Fifth Circuit's judgment and remanded the case for further proceedings.
Official sources for this section
- Official Supreme Court Opinion — file page 2, lines 1-1 — Opinion, file page 2, lines 1-1
- Official Supreme Court Opinion — file page 3, lines 1-1 — Opinion, file page 3, lines 1-1
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
- Official Court disposition document (date not established)
- Official Court disposition document (date not established)
- Official Court disposition document (date not established)
Title and summary sources
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 13, lines 21-29 — Transcript, file page 13, lines 21-29
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 19, lines 11-39 — Transcript, file page 19, lines 11-39
- Official Supreme Court Transcript — file page 21, lines 43-49 — Transcript, file page 21, lines 43-49
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 24, lines 15-33 — Transcript, file page 24, lines 15-33
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 25, lines 47-49 — Transcript, file page 25, lines 47-49
- Official Supreme Court Transcript — file page 33, lines 27-37 — Transcript, file page 33, lines 27-37
- Official Supreme Court Transcript — file page 35, lines 51-11 — Transcript, file page 35, lines 51-11
- Official Supreme Court Transcript — file page 37, lines 31-47 — Transcript, file page 37, lines 31-47
- Official Supreme Court Transcript — file page 37, lines 49-9 — Transcript, file page 37, lines 49-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 57, lines 49-35 — Transcript, file page 57, lines 49-35
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 43-33 — Transcript, file page 58, lines 43-33
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 61, lines 17-31 — Transcript, file page 61, lines 17-31
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 68, lines 19-23 — Transcript, file page 68, lines 19-23
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 29-7 — Transcript, file page 7, lines 29-7
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
- Official Supreme Court Transcript — file page 1, lines 1-9 — Transcript, file page 1, lines 1-9
- Official Supreme Court Transcript — file page 11, lines 25-41 — Transcript, file page 11, lines 25-41
- Official Supreme Court Transcript — file page 13, lines 21-29 — Transcript, file page 13, lines 21-29
- Official Supreme Court Transcript — file page 18, lines 25-9 — Transcript, file page 18, lines 25-9
- Official Supreme Court Transcript — file page 19, lines 11-39 — Transcript, file page 19, lines 11-39
- Official Supreme Court Transcript — file page 21, lines 43-49 — Transcript, file page 21, lines 43-49
- Official Supreme Court Transcript — file page 22, lines 49-7 — Transcript, file page 22, lines 49-7
- Official Supreme Court Transcript — file page 24, lines 15-33 — Transcript, file page 24, lines 15-33
- Official Supreme Court Transcript — file page 25, lines 33-45 — Transcript, file page 25, lines 33-45
- Official Supreme Court Transcript — file page 25, lines 47-49 — Transcript, file page 25, lines 47-49
- Official Supreme Court Transcript — file page 33, lines 27-37 — Transcript, file page 33, lines 27-37
- Official Supreme Court Transcript — file page 35, lines 51-11 — Transcript, file page 35, lines 51-11
- Official Supreme Court Transcript — file page 37, lines 31-47 — Transcript, file page 37, lines 31-47
- Official Supreme Court Transcript — file page 37, lines 49-9 — Transcript, file page 37, lines 49-9
- Official Supreme Court Transcript — file page 39, lines 51-15 — Transcript, file page 39, lines 51-15
- Official Supreme Court Transcript — file page 43, lines 53-25 — Transcript, file page 43, lines 53-25
- Official Supreme Court Transcript — file page 5, lines 23-21 — Transcript, file page 5, lines 23-21
- Official Supreme Court Transcript — file page 56, lines 37-41 — Transcript, file page 56, lines 37-41
- Official Supreme Court Transcript — file page 57, lines 49-35 — Transcript, file page 57, lines 49-35
- Official Supreme Court Transcript — file page 58, lines 37-41 — Transcript, file page 58, lines 37-41
- Official Supreme Court Transcript — file page 58, lines 43-33 — Transcript, file page 58, lines 43-33
- Official Supreme Court Transcript — file page 61, lines 11-15 — Transcript, file page 61, lines 11-15
- Official Supreme Court Transcript — file page 61, lines 17-31 — Transcript, file page 61, lines 17-31
- Official Supreme Court Transcript — file page 66, lines 25-35 — Transcript, file page 66, lines 25-35
- Official Supreme Court Transcript — file page 67, lines 27-17 — Transcript, file page 67, lines 27-17
- Official Supreme Court Transcript — file page 68, lines 19-23 — Transcript, file page 68, lines 19-23
- Official Supreme Court Transcript — file page 7, lines 23-27 — Transcript, file page 7, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 29-7 — Transcript, file page 7, lines 29-7
- Official Supreme Court Transcript — file page 8, lines 9-33 — Transcript, file page 8, lines 9-33
Revision history
- Revision 1 · Official Transcript ·
- Revision 2 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 3 · Official Transcript ·
Correction: Removed an unsupported statement that the Court had not ruled; the available source set did not establish that absence.
- Revision 4 · Official Transcript ·
Correction: Corrected unsupported no-ruling language and clarified that the article's disposition summary is incomplete.
- Revision 5 · Post Opinion ·
Correction: Added the holding and disposition from the verified official Court opinion.
- Revision 6 · Post Opinion ·
Correction: Added the holding and disposition from the verified official Court opinion.
- Revision 7 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.