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Matter of Hendrix

United States Court of Appeals for the Seventh Circuit

986 F.2d 195 (1993)

Relevant factsFree

After Sara Page (plaintiff) was injured by Daniel Hendrix's car and sued him, Hendrix declared bankruptcy and listed Page as a creditor, but Page failed to file a bankruptcy claim despite notice, resulting in discharge of her claim against Hendrix personally; Page then sought to proceed instead against Hendrix's liability insurer, Atlanta Casualty Company (ACC) (defendant). On appeal over whether a bankruptcy discharge precludes suing the debtor's insurer separately, neither Page's attorney nor ACC's attorney cited the recently decided, directly controlling Seventh Circuit precedent squarely holding that bankruptcy discharge does not preclude litigation against the debtor's insurer - a striking omission given that ACC was itself an insurance company represented by counsel located in the very circuit where that insurance-focused precedent had just been decided.

IssueFree

Whether an attorney who knowingly conceals dispositive adverse authority in a court proceeding commits professional misconduct by pursuing a frivolous suit.

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