First Jersey National Bank v. Brown (In re Brown)

OPINION OF THE COURT

WEIS, Circuit Judge.

In this appeal we decide that a bankruptcy judge was required to give preclusive effect to a state court summary judgment *566on liability in a mortgage foreclosure proceeding. Furthermore, because the amount due is yet to be determined, the bankruptcy judge should permit the state court proceedings to continue. Because it appears that the bankruptcy judge’s denial of the mortgagee’s motion to dismiss the Chapter 11 petition here was influenced by a misunderstanding of issue preclusion, we believe that the case should be remanded for further consideration.…