Blackhawk Bankruptcy – Opinion Granting Summary Judgment

In a brief, 4-page decision released May 26, 2016, Judge Gross of the Delaware Bankruptcy Court granted a motion for summary judgment, barring state court litigation in California on the grounds of res judicata. Judge Gross' opinion is available here (the "Opinion").

The Creditors (the state court plaintiffs) seek damages from landslides and soil movement which affected their homes. The Creditors commenced the California Action against Debtor and others in May, 2009. Opinion at *1. Following the Debtor’s bankruptcy filing in 2013, the Plaintiffs severed and stayed the claims against the Debtor, filing a proof of claim for the estimated total cost of repair attributable to the Debtor. Opinion at *1. In fact, the proof of claim was allowed and distributions were made by the Trustee.