Zauper v. Rodrigues-Lababit (In re Rodrigues-Lababit)

Summarized by Scott Gautier , Faegre Drinker Biddle & Reath LLP
15 years 1 week ago

Citation:

No. 10-60019 (9th Cir. Feb. 24, 2011)

Tag(s):

9th Circuit

Ruling:

Affirm ruling of the 9th Circuit BAP that existing default judgement in a non-bankruptcy proceeding did not have preclusive effect on adjudication of claim in bankruptcy case where (a) defendant did not participate in proceedings giving rise to default judgement and (b) theory of damages on which claim was presented differed from theory of damages presented in the non-bankruptcy action.

Procedural context:

Appeal from 9th Circuit BAP affirming Bankruptcy Court ruling

Facts:

Bankruptcy Court allowed a claim of a creditor for damages stemming from creditor's emotional distress that differed from the default judgement entered in a non-bankruptcy action by the creditor against the Debtor. Creditor appealed the allowance of the claim on the theory that the pre-existing default judgement precluded the Bankruptcy Court from modifying the claim amount.

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