Bankers Trust Co. v. Rhoades

Summary

The court addresses Bankers Trust Company's motion in a RICO action arising from alleged concealment of assets and fraud during bankruptcy proceedings. It holds that Milton Braten and Herman Soifer are collaterally estopped from relitigating the bankruptcy-fraud determination, but Daniel Rhoades is not. The court denies a blanket ruling admitting prior testimony, evidence, and judicial findings, while allowing depositions from an earlier action to be treated as if taken in the present case.

Holdings

1. The Second Circuit's ruling that certain RICO damages had not accrued did not preclude Bankers from litigating bankruptcy fraud insofar as the fraud was relevant to accrued claims for past legal fees and expenses.
2. Daniel Rhoades was not collaterally estopped from litigating the issue of bankruptcy fraud.
3. Milton Braten and Herman Soifer were collaterally estopped from relitigating the bankruptcy court's determination that BAC committed bankruptcy fraud.
4. The court denied Bankers' request for a blanket ruling admitting the prior testimony, evidence, and bankruptcy court findings against Rhoades.
5. The thirteen depositions taken in the earlier action could be used in the present action as if originally taken here against Rhoades, Braten, and Soifer.

Questions Presented

1. Whether the Second Circuit's prior decision concerning accrual of RICO injuries precluded Bankers from invoking collateral estoppel on the issue of bankruptcy fraud.
2. Whether Daniel Rhoades, Herman Soifer, and Milton Braten were bound by the bankruptcy court's prior finding of bankruptcy fraud as nonparties to the revocation proceeding.
3. Whether testimony, evidence, and judicial findings from the bankruptcy revocation proceeding should be admitted against Rhoades under the Federal Rules of Evidence.
4. Whether depositions taken in an earlier action could be used in the present action as if originally taken here under Federal Rule of Civil Procedure 32(a)(4).

Disposition

other