Debtors sold a home in Washington state to plaintiffs, who incurred expenses getting the home up to code. In a state court action, plaintiffs obtained a judgment against debtors, in which that court found that debtors had "materially misrepresented the condition of" the home, which proximately caused plaintiffs' damages. Debtors filed a bankruptcy petition, and plaintiffs filed a complaint in the bankruptcy court under 11 U.S.C. § 523(a)(2), alleging their judgment was non-dischargeable. The court noted that, based on principles of res judicata, a valid final judgment could not be re-litigated. However, when the issue between the parties is dischargeability, res judicata is inapplicable, but collateral estoppel might bar the re-litigation of issues that were litigated to the same standards that apply in bankruptcy. Comparing Washington state law misrepresentation standards with the standards of § 523(a)(2), the court concluded the standards were essentially the same. Therefore, plaintiff's motion for summary judgment was granted.