In re EXDS, Inc.
(DBN Subscription Required) |
Bankr. DE |
Where claims by a debtor are subject to arbitration, it is proper for the bankruptcy court (rather than an arbitrator) to determine whether res judicata arising form confirmation of the debtor's plan bars the claims before they are sent to arbitration.
Res judicata did not bar the debtor's claims, even though both the debtor and the defendant were involved in the bankruptcy case. The relief sought in the adversary proceeding was not sufficiently related to the issues resolved at confirmation to give rise to res judicata. In addition, where a disclosure statement or plan specifically reserve actions for further adjudication, res judicata does not apply. Where fraud is not discovered until after confirmation, res judicata does not apply to bar the fraud claim.
Where a debtor, at the time of confirmation, was not aware of the facts giving rise to a claim against its consultant, the debtor's failure to disclose such claim in its disclosure statement does not bar the claim under principles of judicial estoppel. |