Bankruptcy order barred claim against nondebtor

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 22, 2020 9:21 AM

A McHenry County judge ruled Robert and Judith Stevens’ lawsuit against James Dobbs was barred by a settlement agreement that was approved by a bankruptcy judge in Woodfield Planning Corp.’s Chapter 7 case, even though the two refused to sign the agreement. And the Illinois Appellate Court — noting that U.S Circuit Courts of Appeal “are divided over whether a bankruptcy court may issue a nondebtor release and enjoin a non-consenting party who has participated fully in the bankruptcy proceedings but who has objected to the …

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