Zwiacher v, Capstone Family Medical Clinic, LLCAnnotate this Case
The district court entered a default judgment against a litigant in a dispute over real property improvements and rent. Following a levy on his bank account, the litigant moved for relief from the default judgment, attesting that he had stopped participating in the lawsuit because he believed it was about to be dismissed. The district court denied the motion, but on appeal the superior court reversed on procedural grounds. On remand the litigant amended his answer to assert a counterclaim for conversion of personal property; the counterclaim would have been time-barred unless allowed to relate back to the date of the litigant’s original answer. The district court held that the litigant was judicially estopped from pursuing the counterclaim because it was contradictory for him to assert it after attesting that he believed for years that the case against him had been dismissed. The superior court affirmed this decision. The Alaska Supreme Court granted certiorari review to address one issue: whether judicial estoppel barred the conversion counterclaim. The Court concluded the litigant’s two positions — his asserted belief that the case had been dismissed and his later assertion of a counterclaim — were not clearly inconsistent and that the judicial estoppel doctrine therefore was inapplicable. The superior court’s decision affirming the district court’s judgment on this issue was reversed and the matter remanded to the district court for further proceedings on the counterclaim.