Halpern v. Schwartz
United States Court of Appeals for the Second Circuit
426 F.2d 102 (2d Cir. 1970)
Creditors filed an involuntary bankruptcy petition against Evelyn Halpern (defendant) alleging three separate acts of bankruptcy, and the district court found all three had occurred, a ruling affirmed on appeal. Trustee Schwartz (plaintiff) later opposed Halpern's discharge from bankruptcy, arguing she had transferred a valuable bond and mortgage to her son with intent to hinder, delay, or defraud creditors — the same intent finding underlying one of the three original bankruptcy grounds — and moved for summary judgment on the theory that this intent issue was already conclusively decided (res judicata). The bankruptcy referee and district court agreed and granted summary judgment against Halpern's discharge.
Whether a prior judgment resting on multiple independent, alternative grounds is conclusive for collateral estoppel purposes as to the facts necessarily found to establish only one of those grounds.