GABRIEL BRAVO On Appeal from the United States District Court for the Eastern District of Pennsylvania
- Summarized by Michael Myers , Ballard Spahr LLP
- 10 months 2 days ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 24-1657 (3rd Circuit, Apr 17,2025) Not Published
- Tag(s):
-
- Ruling:
- The Third Circuit Court of Appeals affirmed the District Court, which had upheld the bankruptcy court's overruling of the debtor's claim objection based on res judicata.
- Procedural context:
- The appellee creditor held a mortgage foreclosure judgment from 2015. In 2020, the creditor filed a motion to reassess damages in Pennsylvania state court to add costs that had accrued on the judgment. The debtor had filed a response under Pennsylvania procedures in order to object to post-judgment costs and claim credit for alleged payments. The state court entered an order without an explanatory opinion reassessing damages. The debtor then filed bankruptcy and objected to the creditor's claim based on that order.
- Facts:
- The original foreclosure judgment was entered in June 2015 for $105,613.62. The property initially sold at a July 2017 sheriff's sale but the state court vacated the sale. Subsequently, the debtor filed his first two bankruptcies, which delayed the foreclosure but were both dismissed. In early 2021, the creditor filed its motion to reassess damages, seeking a judgment of $153,035.25, to include accrued interest and costs and recognizing $2,880 in payments. The debtor filed his Answer with New Matter to claim alleged payments of $31,184 and to object to the costs. The state court did not accept either party's proposed dollar figure. Instead, it entered an order for $136,865.70, which equaled the amount of the original judgment plus $31,252.08 in post-judgment interest but without providing even the $2,880 in credit conceded by the creditor. The debtor did not move to reconsider or appeal that order. Debtor instead filed bankruptcy and objected to the creditor's claim based on the order.
- Judge(s):
- Hardiman, Porter, and Smith
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