Adams v. Adams

Bankruptcy Ct. erred in denying creditor’s claim against debtor’s bankruptcy estate, where said claim was based on final judgment against debtor that creditor had previously obtained in state court. While Bankruptcy Ct. believed it had power to inquire into validity of creditor’s claim against debtor, Bankruptcy Ct. was precluded from doing so pursuant to doctrine of issue preclusion, where debtor’s current arguments against validity of claim were heard and rejected by three state courts. Ct. further noted that creditor did not assert any exception to application of doctrine of issue preclusion such as creditor obtaining state court judgment by means of fraud.