Galaz v. Katona

After the bankruptcy court enjoined Alfred Galaz from pursuing any claims related to Worldwide Subsidy Group (WSG) against his former daughter-in-law, Lisa Katona, Galaz appealed to the district court. The district court affirmed. The court concluded that Galaz’s suit in state court is arguably a violation of Katona’s discharge rights, directly implicating the bankruptcy court’s “arising under” jurisdiction; the bankruptcy court’s interpretation of the 2011 Settlement Agreement is determinative of Katona’s claim, and the bankruptcy court’s order was within its statutory authority; the bankruptcy court did not abuse its discretion in refusing to abstain because the proceeding at issue is “core” under 28 U.S.C. 157(b); Galaz’s claims are barred by res judicata, compromise and settlement, and accord and satisfaction; the bankruptcy court did not abuse its discretion in applying judicial estoppel; and the district court did not err in denying his motion for summary judgment. Accordingly, the court affirmed the judgment. View "Galaz v. Katona" on Justia Law