Washington Mutual Bank v. Carlson (In Re Carlson)

This appeal follows the district court’s bench trial and final judgment in favor of Plaintiff-Appellee, Washington Mutual Bank and against Defendants-Appellants, Julie Carlson and Gary Carlson. The Carlsons argue that (1) Washington Mutual’s claims are barred by res judicata; (2) the bankruptcy and district courts lacked subject matter jurisdiction over the Minnesota state law claims against the non-debt- or, Gary; (3) the district court erred in denying the Carlsons’ summary judgment motion on several claims because Washington Mutual did not justifiably or reasonably rely upon their…