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Opinion 161

Case Name: 

Larson v. Zion's First Nat'l Bank (In re Larson)

Judge: 
Judge Clark
Date: 
Jun-22-1985
Case Number(s): 
84PC-1950
Status: 

UNPUBLISHED

Body: 

Bank filed a motion for relief from stay in chapter 11 debtor's bankruptcy case in order to foreclose a lien it had on property either formerly or currently owned by debtor. Debtor then filed an adversary complaint against bank, asserting causes of action that arose from the parties' dealings with respect to the property. Bank raised a number of defenses to the adversary complaint by motion. The court concluded that, because debtor's claims primarily involved adjudication of rights under state law, the adversary action was not a "core" bankruptcy proceeding. The court then rejected bank's argument that debtor was precluded by collateral estoppel from re-litigating issues decided in a state court restraining order proceeding, on the ground that the state court record had not been provided. The court also refused to dismiss the complaint based on bank's argument that the claims stated were compulsory counterclaims in its foreclosure action, concluding that no foreclosure action had been filed. Finally, bank's requests, (1) to dismiss for failure to plead jurisdiction, (2) to strike portions of debtor's complaint, and (3) to abstain, were all denied.

Internal Ref: 
Opinion 161
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