Indus. Clearinghouse, Inc. v. Mims (In re Coastal Plains, Inc.), 338 B.R. 703 (N.D. Tex. 2006)
N/AOUTCOME: The court denied the appeal in its entirety and affirmed the bankruptcy court's orders and judgment.
OVERVIEW: Rod Poirot was the trial and appellate co-counsel for Jeffrey H Mims, individually and as Chapter 7 Trustee. Appellants claimed that the trustee refused to pursue malpractice claims alleged ... against the debtor's former bankruptcy attorney. On review, the court affirmed. The case was properly removed directly to the bankruptcy court pursuant to the requirements of 28 U.S.C.S. § 1452(a) and Fed. R. Bankr. P. 9027 because the removal to a bankruptcy court was the functional equivalent to a removal to a district court. Further, the claims were barred by res judicata. The bankruptcy court's order awarding fees to the trustee satisfied the final judgment on the merits requirement of res judicata despite the later reopening of the bankruptcy case. Appellants were aware that the trustee was not pursuing claims against the attorney and that he was requesting final distributions. Any claims against the trustee should have been raised at that time, and the failure to do so foreclosed appellants from pursuing the claims four years later.
