June 8, 2009
Cert Petition for United Student Aid Funds v. Espinosa re res judiciata of Chapter 13 Plan
This is the 2008 opinion by Alex Kozinski that the chapter 13 plan is res judicata even when setting forth rights typically determined by adversary proceeding. In Espinosa, the plan provided that the student loan unpaid at the end of the plan period was discharged. The lender did not object to the plan and took the position (buttressed by recent BAP rulings) that the determination of dischargeability had to come from an adversary proceeding. Kozinski wrote, “It makes a mockery of the English language and common sense to say that Funds wasn’t given notice, or was somehow ambushed or taken advantage of.”
Tom Goldstein at Scotusblog.com has put this case on his list of possible grant of cert since it's pretty important and the circuits are widely split. The cert petition can be accessed here.
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Lobbying for bankruptcy protection and statute of limitations.
Posted by: Cindy Warner | Jun 16, 2009 9:25:14 AM
The Supreme Court’s decision on Tuesday rejected positions advanced by the federal government, more than 30 states and the student loan industry. The lender in Mr. Espinosa’s case, United Student Aid Funds, warned in a brief that a decision in his favor would “open the floodgates” to allowing others to avoid paying their debts, including “taxes, domestic support obligations, drunk driving personal injury and death liabilities, and criminal fines and restitution.
Posted by: student aid | Apr 10, 2010 12:03:09 PM