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Saturday, November 27, 2004

RES JUDICATA DOES NOT APPLY UNLESS ISSUES ARE SUFFICIENTLY RELATED In re EXDS, Inc. (Bankr. DE 2004) Where claims by a Debtor are subject to arbitration it is proper for the Court (rather than an arbitrator) to determine whether res judicata arising form confirmation of the Debtor's Plan bars claims before they are sent to arbitration. Here, res judicata did not bar the Debtor's claims, even though both the Debtor and the Defendant were involved in the underlying Bankruptcy case. The relief sought in the Adversary proceeding was not sufficiently related to the issues resolved at confirmation to give rise to res judicata. In addition, where a Disclosure Statement or Plan specifically reserves actions for further adjudication res judicata does not apply. Likewise, where fraud is not discovered until after confirmation, res judicata does not apply to bar the fraud claim. Finally, where at the time of confirmation the Debtor was not aware of facts giving rise to a claim against its consultant, failure to disclose such a claim in the Debtor's Disclosure Statement will not bar the claim under principles of judicial estoppel.

4 Comments:

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10/11/2005 04:05:00 PM  
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10/27/2005 10:47:00 PM  
Anonymous Anonymous said...

Hiya M Heday,
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10/29/2005 03:49:00 AM  
Anonymous Anonymous said...

Hi there M Heday... Look where I landed searching for info on types of bankruptcy. But since Im here... I thought I'd just stop by and read... I found your post "this post" kinda interesting.
Do you always write that way?
I guess I'd better be on my way as I still need stuff on types of bankruptcy for my project.
Thanks for a good read M Heday ...and keep doing all the great blogs. Cheers.

11/03/2005 09:13:00 PM  

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