Facts

Indar Kaur and Ashwindar Kaur sued Citibank NA and Michael Osuna.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that they obtained a loan from defendants for $9.65 million to secure the purchase of a property, which they later defaulted on despite obtaining a loan modification from defendants. Next, defendants informed plaintiffs that they were selling their note, and that plaintiffs could purchase the note at a reduced rate. However, plaintiffs could not obtain financing so defendants sold the note to FSNB. FSNB then demanded immediate payment from plaintiffs. However, plaintiffs could not meet their obligations so FSNB appointed a receiver over the property. Plaintiffs filed for bankruptcy. FSNB later sold it at a trustee's sale. Plaintiffs then sued defendants, asserting causes of action for intentional misrepresentation of fact, negligent misrepresentation, and promise made without the intent to perform.

DEFENDANT'S CONTENTIONS:
Defendants denied plaintiffs' allegations, and asserted various affirmative defenses. Defendants alleged that plaintiffs were co-debtors for real property who later filed for bankruptcy. Defendants argued that plaintiffs' lawsuit was barred because they failed to list this lawsuit in their individual bankruptcy proceedings, and moved for judgment on the pleadings.

Result

The court agreed with defendants' argument that plaintiffs were judicially estopped from asserting their claims against them due to their failure to list this lawsuit in their individual bankruptcy proceedings. As such, this court granted defendants' motion for judgment on the pleadings.

Other Information

FILING DATE: Oct. 4, 2013.