Batlan v. Bledsoe (In Re Bledsoe)

Opinion by Judge GRABER; Partial Concurrence and Partial Dissent by Judge O’SCANNLAIN.

GRABER, Circuit Judge:

We must decide under what circumstances a federal bankruptcy court may avoid a transfer made pursuant to a state-court judgment dissolving the marriage of the debtor. We hold that, under Oregon law, a party who challenges a dissolution judgment must allege and prove “extrinsic fraud.” Following the lead of the Fifth Circuit in Ingalls v. Erlewine (In re Erlewine), 349 F.3d 205 (5th Cir.2003), we also hold that a dissolution judgment that follows from a regularly conducted, contested…