SOUTHEAST BANK, N.A., A NATIONAL BANKING ASSOCIATION, AS CO-PERSONAL REPRESENTATIVE OF THE ESTATE OF CHARLES M. MCARTHUR, DECEASED, AS CO-TRUSTEE UNDER THE WILL OF CHARLES M. MCARTHUR, DECEASED, AND AS AGENT; AND NADENE O. HUFF, AS CUSTODIAN FOR LANAE MCARTHUR UNDER THE FLORIDA UNIFORM GIFTS TO MINORS ACT, AND AS CO-PERSONAL REPRESENTATIVE OF THE ESTATE OF CHARLES M. MCARTHUR, DECEASED, APPELLANTS,
v.
EQUITEC LEASING INVESTORS 1978, APPELLEE

Fla. 4th DCA | 1984-03-14
No. 83-856
Beranek, J., Walden, J., Anstead, C.J.
446 So. 2d 1155 Florida District Court of Appeal, Fourth District (1984) Positive Treatment

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Synopsis

Southeast Bank is collaterally estopped from relitigating property ownership in state court after the issue was determined in a federal bankruptcy proceeding where the bank was in privity or was a successor in interest to the debtor-in-possession.


Holding

A party is collaterally estopped from relitigating property ownership in state court when that issue was actually litigated and determined in a prior federal bankruptcy proceeding in which the party was in privity or was a successor in interest.


Headnotes

[1] A party is collaterally estopped from relitigating property ownership in state court when ownership was actually litigated and determined in a prior federal bankruptcy pr…

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Facts & Procedural History

Southeast Bank, as co-personal representative and co-trustee of Charles M. McArthur's estate, appealed a summary judgment in favor of Equitec Leasing …

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Southeast Bank appeals a final summary judgment entered in favor of Equitec Leasing Investors in a mortgage foreclosure proceeding. The summary judgment was granted on grounds that the ownership of the property being foreclosed had been determined in a federal bankruptcy proceeding.

We have thoroughly reviewed the matter and hold Southeast Bank collaterally es-topped from relitigating the ownership in the state court herein. Freehling v. MGIC Financial Corporation, 437 So. 2d 191 (Fla. 4th DCA 1983), holds this doctrine applicable under the circumstances of this case. The major contested issue on appeal has been whether the debtor-in-possession and the bank were parties in privity in the bankruptcy proceeding. See In Re Wesco Products Co., 22 B.R. 107 (N.D.Ill.1982), and Aerojet General Corp. v. Askew, 366 F.Supp. 901 (N.D.Fla.1978), aff'd. 511 F. 2d 710 (5th Cir.), cert. den., 423 U.S. 908, 96 S.Ct. 210, 46 L.Ed.2d 137 (1975). In addition, the bank was bound as a “successor in interest” by the bankruptcy court judgment in that its interest was entirely dependent upon the ownership interest of the debtor-in-possession. We reject all of appellants’ arguments that ownership was not actually litigated in the bankruptcy ease.

AFFIRMED. '

BERANEK and WALDEN, JJ., concur. ANSTEAD, C.J., dissents without opinion.


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