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Connie Drew v. Thomas W. Stanton and Mary Stanton (In re Stanton)

Bankr. No.: 
99-50465
Adv. No.: 
99-5022
Chapter: 
7
Date of Decision: 
May 3, 2000
Issue: 
Is a state court judgment dismissing a cause of action as a discovery sanction entitled to collateral estoppel (issue preclusion) effect?
Ruling: 
The Court will give collateral estoppel (issue preclusion) effect to a state court judgment dismissing a cause of action as a discovery sanction, under the facts and circumstances of this case. Refusing to do so would effectively render nugatory S.D.C.L. ยง 15-6-37(b)(2)(C), as any party "sanctioned" by having her case dismissed could simply re-file her complaint. Moreover, the Court should not condone or excuse the behavior of litigants who abuse the processes and dignity of the court.
Full Bankruptcy Court Decision: