In Re: John W. Catt, Ii. Appeal Of: Shirley and Gerald Hash
Court of Appeals for the Seventh Circuit
1Opinion of the Court
POSNER, Circuit Judge.
When John Catt, a builder, declared bankruptcy, the Hashes, who had been joint venturers with Catt and had obtained a fraud judgment against him in an Indiana state court for almost half a million dollars, sought a ruling from the bankruptcy judge that the judgment debt to them was not dischargeable in bankruptcy. 11 U.S.C. § 523(a)(2)(A). The judge ruled, however, that the Hashes could not use the doctrine of collateral estoppel to make the state court’s finding of fraud binding in the bankruptcy proceeding; they would have to prove fraud anew in that proceeding to…
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