Adams v. Adams

Creditor appealed the bankruptcy court's denial of her claim against the estate of debtor, her former husband and business partner. The state courts had determined that debtor still owed money to creditor after they divorced and unwound their "monster truck" business. The court had jurisdiction over the appeal under 28 U.S.C. 158(d) because the decisions of the bankruptcy court and the district court were final orders as to creditor's claim. The court found that the issues concerning the validity of creditor's claim were previously adjudicated in the state courts and that the doctrine of issue preclusion prevented the bankruptcy court from rehearing those issues. Accordingly, the court reversed and remanded for further proceedings. View "Adams v. Adams" on Justia Law