Gober v. Terra + Corporation

EMILIO M. GARZA, Circuit Judge:

This case presents the question of whether a state court default judgment entered as a sanction for discovery abuse is entitled to issue preclusive effect in á subsequent bankruptcy proceeding to determine the dis-chargeability of the judgment debt. In 1992, Appellee Terra + Corporation (“Terra”) filed a complaint in bankruptcy court against Debtor-Appellant, Terry M. Gober, objecting to discharge of a judgment it had obtained against Gober in Texas state court in 1983. The bankruptcy court collaterally estopped Gober from relitigating issues determined in the…