Court of Appeals of New York
Ins. Co. of PA v. HSBC Bank USA, 18
A bankruptcy court order allowing a creditor to seize a debtor's bank account is entitled to res judicata effect in a subsequent state proceeding alleging that a portion of the funds in the account were state tax proceeds that should not have been part of the bankruptcy estate. As plaintiff and its subrogor had notice of the bankruptcy action and failed to alert the court that the funds at issue were tax receipts held in trust, plaintiff cannot now challenge defendant's court-approved seizure of the funds.
Appellate Information
- Decided 02/12/2008
- Published 02/12/2008
Judges
Court
- Court of Appeals of New York