Bennett v. Garner

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The Fourth Circuit vacated the district court's award of summary judgment for Virtus, plaintiff's former employer, in an action seeking to collect on a state court judgment entered against defendants. The court held that plaintiff's claims were not precluded under Virginia's doctrine of res judicata, because he could not have brought those claims at the time of his earlier litigation. In this case, plaintiff could not have brought his fraudulent transfer claims in the arbitration proceedings, because it was only after the state court judgment was entered that plaintiff would have actual notice of any potential fraudulent transfer claims. Similarly, because plaintiff was required to obtain a judgment against Virtus before bringing his alter-ego claim, the claim had not accrued at the time of the arbitration proceedings. View "Bennett v. Garner" on Justia Law