No. 83-856 | Fla. Dist. Ct. App. | Mar 14, 1984
Southeast Bank appeals a final summary judgment entered in favor of Equitec Leasing Investors in a mortgage foreclosure proceeding. The summary judgment was granted on grounds that the ownership of the property being foreclosed had been determined in a federal bankruptcy proceeding.
We have thoroughly reviewed the matter and hold Southeast Bank collaterally es-topped from relitigating the ownership in the state court herein. Freehling v. MGIC Financial Corporation, 437 So. 2d 191" date_filed="1983-09-07" court="Fla. Dist. Ct. App." case_name="Freehling v. MGIC Financial Corp.">437 So.2d 191 (Fla. 4th DCA 1983), holds this doctrine applicable under the circumstances of this case. The major contested issue on appeal has been whether the debtor-in-possession and the bank were parties in privity in the bankruptcy proceeding. See In Re Wesco Products Co., 22 B.R. 107" date_filed="1982-06-03" court="Bankr. N.D. Ill." case_name="Official Creditors' Committee of the Wesco Products Co. Ex Rel. Wesco Products Co. v. Alloy Automotive Co. (In Re Wesco Products Co.)">22 B.R. 107 (N.D.Ill.1982), and Aerojet General Corp. v. Askew, 366 F. Supp. 901" date_filed="1973-11-21" court="N.D. Fla." case_name="Aerojet-General Corp. v. Askew">366 F.Supp. 901 (N.D.Fla.1978), aff'd. 511 F.2d 710" date_filed="1975-05-30" court="5th Cir." case_name="Aerojet-General Corporation v. Reubin O'Donovan Askew">511 F.2d 710 (5th Cir.), cert. den., 423 U.S. 908, 96 S.Ct. 210, 46 L.Ed.2d 137 (1975). In addition, the bank was bound as a “successor in interest” by the bankruptcy court judgment in that its interest was entirely dependent upon the ownership interest of the debtor-in-possession. We reject all of appellants’ arguments that ownership was not actually litigated in the bankruptcy ease.
AFFIRMED. '