Kamareddine ex rel. Atlas Marine Services, Inc. v. Demery

The question presented in this appeal is whether a chapter 11 bankruptcy determination has a res judicata effect on pending state court claims and counterclaims between a former officer/shareholder and other shareholders for breach of fiduciary duties, where the bankruptcy judge finds, on the pertinent issue, that a corporation’s stock is worthless, and that the departure of the officer/shareholder from the corporation caused the stock’s decline in value. In my opinion, the bankruptcy judgment has no preclusive effect because the breach of fiduciary duty issue was not presented to and was not…