Kathy Jean Campbell v. Julie A. Garrett

Summary

The United States District Court for the Western District of Virginia affirmed a bankruptcy court order holding that Kathy Jean Campbell’s judgment debt to Julie A. Garrett was nondischargeable under 11 U.S.C. § 523(a)(4). The court held that Campbell had not properly raised her challenges to service of process and notice of the underlying state-court default judgment before the bankruptcy court, and that review of the state-court judgment was also barred by the Rooker-Feldman doctrine. The court denied Garrett’s motions for expedited relief, damages, costs, and sanctions.

Holdings

1. Campbell's challenges to service of process and notice were not properly before the district court because she did not raise them before the bankruptcy court in opposition to Garrett's summary-judgment motion.
2. Even if Campbell's service and notice arguments were considered, the Rooker-Feldman doctrine would bar the district court from reviewing or rejecting the state-court default judgment.
3. The bankruptcy court properly granted Garrett summary judgment and determined that Campbell's judgment debt was nondischargeable under 11 U.S.C. § 523(a)(4).

Questions Presented

1. Whether the bankruptcy court properly granted Garrett summary judgment and determined that Campbell's judgment debt was nondischargeable under 11 U.S.C. § 523(a)(4).
2. Whether Campbell could challenge the validity of the state-court default judgment based on defective service and lack of notice for the first time on appeal.
3. Whether the district court could review the state-court judgment under the Rooker-Feldman doctrine.
4. Whether the bankruptcy court's reliance on the state-court judgment violated Campbell's due process rights or 28 U.S.C. § 1738.

Disposition

affirmed