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IN RE KNIGHT-CELOTEX, LLC

No. 11-3588.

695 F.3d 714 (2012)

In re KNIGHT-CELOTEX, LLC et al., Debtors. Appeal of James A. Knight.

United States Court of Appeals, Seventh Circuit.

Decided September 5, 2012.

Attorney(s) appearing for the Case

David K. Welch , Attorney, Crane, Heyman, Simon, Welch & Clar, Chicago, IL, for Debtors.

Terence G. Banich , Carrie Ellen Davenport , Steven B. Towbin (argued), Attorneys, Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, Chicago, IL, for Appellant.

Michael L. Molinaro , Attorney, Loeb & Loeb LLP, Chicago, IL, Theresa L. Davis (argued), for Appellee.

Richard S. Lauter (argued), Attorney, Freeborn & Peters LLP, Chicago, IL, for Trustee-Appellee.

Before CUDAHY, KANNE, and HAMILTON, Circuit Judges.

HAMILTON, Circuit Judge.

Using a judicial estoppel theory, debtor-appellant James Knight attempts to turn a harmless and seemingly inadvertent failure to disclose an adverse interest in a bankruptcy proceeding into a potential multimillion dollar windfall. He appeals from an order in the jointly administered bankruptcy cases of Knight-Celotex, LLC and Knight Industries I, LLC (collectively, the "Companies"). That order permitted the Companies' chapter 7 bankruptcy...

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