A finding of fraud in U.S. Bankruptcy Court does not mean that the issue has already been decided for liability purposes in Pennsylvania courts, the state Superior Court has ruled in an apparent issue of first impression.
A unanimous three-judge panel of the court ruled in Weissberger v. Myers that the doctrine of collateral estoppel did not preclude arguments on whether a defendant, found by bankruptcy court to have debts that could not be discharged because of fraud, had committed fraud for purposes of a civil litigation.
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