IN RE AN-TZE CHENG

BAP No. CC-03-1352-KMaB, Bankruptcy No. SA 02-17395-JR.

308 B.R. 448 (2004)

In re Andrew AN-TZE CHENG and Yvonne E-Fung Cheng, Debtors. Andrew An-Tze Cheng and Yvonne E-Fung Cheng, Appellants, v. K & S Diversified Investments, Inc., Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed March 31, 2004.


Attorney(s) appearing for the Case

Rebekah L. Parker, Law Office of Rebekah L. Parker, Los Angeles, CA, for Andrew and Yvonne Cheng.

Adam A. Burton, Burton, Samini & Ghaderi, LLP, Costa Mesa, CA, for K & S Diversified Investments, Inc.

Before KLEIN, MARLAR and BRANDT, Bankruptcy Judges.


OPINION

KLEIN, Bankruptcy Judge.

This appeal deals with constraints on remedies for judicial estoppel in bankruptcy. Under the equitable principle that a court will not do inequity in the name of equity, we hold that the debtor's different capacities, as debtor and as debtor in possession performing duties of the trustee, must be considered when fashioning a judicial estoppel remedy and that a remedy must be calibrated so as not to harm bystanders. Thus...

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