Boyd v. Rescap Borrower Claims Trust (In re Residential Capital, LLC)
- Summarized by Weston Eguchi , Willkie Farr & Gallagher LLP
- 5 years 5 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 16-2950-bk (2nd Circuit, Oct 04,2017) Not Published
- Tag(s):
-
- Ruling:
- Bankruptcy court had jurisdiction to disallow a claim that was based on the same claims that had been the subject of litigation outside of bankruptcy. Claims allowance is a core proceeding, and claimant filed a proof of claim, thereby subjecting himself to bankruptcy court jurisdiction. Moreover, Claimant's request to transfer his appeal to the district court where litigation had been pending was properly denied.
- Procedural context:
- Claimant sued GMAC (the servicer of his mortgages) in California district court in 2011 and lost. The determination was affirmed on appeal and the Supreme Court denied review. In bankruptcy court, claimant filed a proof of claim based on the same claims in his litigation. The bankruptcy court disallowed the claim based on res judicata, and the district court affirmed.
- Facts:
- Claimant owned two properties in California with mortgages that were serviced by GMAC Mortgage LLC, which eventually filed for bankruptcy.
- Judge(s):
- Chin, Droney, Restani
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