Zarour v. JP Morgan Chase Bank (In re Zarour)
- Summarized by Stephen Falanga , Walsh Pizzi O'Reilly Falanga LLP
- 8 months 2 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 23-457-bk (2nd Circuit, Apr 25,2024) Not Published
- Tag(s):
-
- Ruling:
- In this non-precedential Summary Order, based on principles of res judicata, the Second Circuit affirmed the decision of the District Court affirming the decision of the Bankruptcy Court that dismissed the Debtor's adversary proceeding complaint seeking to void a mortgage on the Debtor's property in New Jersey based on alleged fraud in the prior New Jersey foreclosure action.
- Procedural context:
- Based on res judicata grounds and application of the Rooker-Feldman doctrine, the bankruptcy Court dismissed a complaint filed by a pro se Debtor seeking to "vacate a foreclosure sale" and final judgment obtained in a New Jersey action based on an allegation that the bank submitted "fraudulent documents' to the Bankruptcy Court. The District Court affirmed, and the Second Circuits affirmed.
- Facts:
- The Debtor filed an adversary complaint in his bankruptcy case seeking to void a mortgage on property he owned in New Jersey. There had been a previous foreclosure action in the New Jersey courts which resulted in the entry of a final judgment in foreclosure in favor of the bank and in connection with the New Jersey court found the mortgage documents valid. The Debtor claimed that the basis for his new complaint was due to the bank allegedly submitted fraudulent documents to the bankruptcy court in connection with a request for stay relief to continue the foreclosure. The bankruptcy court and district court concluded that all of the Debtor's claims grew out of the same underlying foreclosure action and, as such, res judicata and application of the Rooker-Feldman doctrine warranted dismissal of the action. The Third Circuit affirmed on res judicata grounds, finding it need not reach the issue of whether Rooker-Feldman applied.
- Judge(s):
- Parker, Loheir, Jr. and Nathan
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