Multiple lawsuits, judicial estoppel and Massachusetts law: What you need to know

Lawsuits are stressful, time consuming and emotional drains. Whether the suit is for divorce, contract disputes, personal injury or an employment matter, legal battles take a large portion of time and energy and can be expensive. More than one lawsuit touching on the same issues or assets can be a potential trap for the unwary. Specifically, it could be extremely frustrating for a party to put forth the time and effort to move forward with a suit or defense only to discover that the legal doctrine of judicial estoppel could prevent the party from asserting a specific claim or defense.

Although most of the published Massachusetts decisions on judicial estoppel are relatively recent, it is a well-established doctrine that can have an extreme impact on matters of litigation.

Judicial estoppel: The basics.

Judicial estoppel is a legal tool used to help preserve the integrity of the judicial system by making sure that the facts or claims presented in court are accurate. It prohibits parties from presenting a factual position or claim that is contrary to a prior set of facts or claims asserted by the same party during a previous judicial proceeding. The New Hampshire Bar Association in a recent article explained that judicial estoppel is designed to prevent inconsistencies within the court system.

Judicial estoppel: When it can cause a problem for you.

This issue can manifest in a number of ways. A prime example involves divorce. During the divorce process, the couple discloses all marital assets. The husband fails to list a business partnership interest. The divorce court relies on the asset disclosures in rendering a division of assets. Subsequently, the husband's business partner claims that the husband is not, in fact, a partner. The husband may be precluded from arguing otherwise based on his prior representations to the divorce court.

In another situation, a court in New York found a husband was playing "fast and loose with the court" when he attempted to assert a claim on farm property that the wife stated was hers alone. The court's claim was based on the fact that the husband was sued earlier by a creditor and claimed in that suit that he had no legal right to his wife's interest in the farm property. As a result, the husband was barred from receiving any portion of this asset.

Judicial estoppel: Legal counsel can help.

The New Hampshire Bar Association further notes that the harsh consequences tied to the application of judicial estoppel make it unlikely that courts in the state will use this tool often. The doctrine will likely be reserved for cases of "extreme inequity."

Regardless, the doctrine is just one example of the many reasons that those moving forward with a lawsuit are wise to seek the counsel of an experienced attorney. A Massachusetts litigation and trial lawyer can review your case and help to better ensure that your legal rights are protected and that you receive the most favorable outcome possible.