[CLBS] Issue preclusion and or claim preclusion

[Legal]

Listserv mates,

Does anyone have any experience with res judicata, issue preclusion and/or claim preclusion in the bankruptcy context? Or, does anyone know of Meyers or Pappas addressing these issues? I found a great Idaho case, but would like to know whether or not the BK judges have addressed the issue themselves. Any insight, cases, or experiences would be welcome. 

Hypothetically speaking: 

Client files a chapter 13 and the 13 is stayed for a civil proceeding to run its course. The end result of that civil proceeding is a substantial judgment. The ch 13 bk judge rules that the judgment is not dischargeable under 1328(a)4 the malicious prong, (the statue was changed in 2005 to read willful or malicious) the BK hearing nor the civil proceeding did not address the willful prong. 

Now clients have filed an appropriate ch 7 and there is going to be a dischargeability hearing under 523(a)(6) on the issue of whether or not the judgment is dischargeable. We would like to argue on summary judgment that the creditors have had their day in court. We believe the creditor has had ample opportunity and notice of this issue. Counsel in the civil proceeding asked for a malicious jury instruction, which was granted. The judge in the 13 ruled that the debt was dischargeable based upon the malicious instruction in the civil proceedings, and therefore not the willful prong.

Sent from my iPad

Sent from my iPad