(Bankr. E.D. Ky. Mar. 7, 2016)
The bankruptcy court grants the defendants’ motion to dismiss the trustee’s action to avoid the transfer of $50,000 to the defendant law firm. The trustee had previously brought an action seeking turnover of the funds and lost. That decision was appealed to the B.A.P. The bankruptcy court here holds that res judicata bars the avoidance action because the prior action resulted in a final decision on the merits, the current case was between the same parties, the issues in the current action were litigated or should have been litigated in the prior action, and there was an identify of the causes of action. Opinion below.