Bankruptcy: Bankruptcy Discharge Injunction-Contempt-Preclusive Effect

Plaintiffs appealed the district court’s order affirming the bankruptcy court’s order holding plaintiffs in contempt for violating a final bankruptcy-discharge injunction. On appeal, plaintiffs argued that an earlier bankruptcy court order and related state court judgments ruling that plaintiffs could foreclose on defendants’ collateral had preclusive effect on the injunction.

Where bankruptcy court possessed independent authority to enforce its own orders and where its prior orders merely allowed state courts to entertain the merits of defendants’ claims, it could impose contempt for plaintiffs’ violation of a final bankruptcy-discharge injunction.

Judgment is affirmed.

First State Bank of Roscoe v. Stabler (MLW No. 72665/Case No. 17-2439 – 18 pages) (U.S. Court of Appeals, 8th Circuit, Melloy, J.) Appealed from U.S. District Court, District of South Dakota, Lange,J. (James Ellis Moore for appellant; Roger Damgaard, Sander J. Morehead and James Power on brief) (Patrick T. Dougherty for appellee; Lee Schoenbeck on brief)