Renee Williams v. John Marlar

Trustee's assertion of claim on behalf of creditors not involved in previous state court litigation was not barred by collateral estoppel; bankruptcy court did not err in finding the transfer of the property was fraudulent and should be set aside; however, creditor involved in state court litigation is barred by res judicata and principles of comity from asserting her claim against the estate, and her claim may not be satisfied from any asset that becomes a part of debtor's bankruptcy estate by virtue of this adversary proceeding.

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full text of the Court's opinion.

We direct the bankruptcy court not to satisfy the bankruptcy claim of
Paula Davis, directly or indirectly, from any asset that has become a part of Marlar’s
bankruptcy estate by reason of this adversary proceeding. The judgment is affirmed.
Each party shall bear his or her own costs.

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