Larry Schaefer v. Dale Putnam

SHEPHERD,- Circuit Judge.

Larry and Elaine Schaefer (“Larry and Elaine”) 1 appeal the district court’s 2 dismissal of their claims in this diversity action. The district court found that res judi-cata and collateral estoppel barred all claims. We affirm,

I

Larry and Elaine are husband and wife. They began to experience financial troubles after a $127,125 judgment was entered against Larry in 1998 for breach of a grain contract.

In January 2001, Larry and Elaine’s attorney, Dale Putnam, advised them that if they were to file for Chapter 7 bankruptcy, the bankruptcy trustee could not reach real…