Maxwell v. Michigan Fidelity Acceptance Corp. (In Re Maestas)

DECISION

JAMES E. SHAPIRO, Bankruptcy Judge.

The doctrine of res judicata — often referred to in modern terminology as “claim preclusion” — has influenced the outcome of countless bankruptcy decisions in the past and, undoubtedly, will continue to do so in the future. When res judicata applies, it forecloses relitigation of claims which were either decided or could have been decided in prior litigation. The case at bar is yet another in the line of many cases which have struggled with this issue.

In this adversary, the defendant, Michigan Fidelity Acceptance Corp. (“Michigan Fidelity”), has…