Anti-Injunction Act barred bankruptcy court from enjoining state- court litigation between bank and debtor's contractor.
The Anti-Injunction Act barred a bankruptcy court from enjoining state-court litigation between a bank and the debtor's contractor, which arose from the debtor's construction project financed by the bank's predecessor, on the grounds that the issues involved in that litigation had already been decided by the bankruptcy court, through its approval of the debtor's settlement of the contractor's claims against it. The only issue resolved in the bankruptcy court was the amount of the contractor's claim in the bankruptcy court, which the state court was not being asked to adjudicate.
Saturday, December 15, 2007
Posted by Rachel Lynn Foley at 12:18 PM
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