Q: State trial court order and judgment from extrinsic fraud on the court by officers of the court used by a BK Trustee?
A Chapter 7 Bankruptcy Court Trustee used a a state trial court default judgment and order (both secured through extrinsic fraud on the court by attorneys as officers of the court) against a party, to take a lawsuit away from that same party. If that aggrieved party uses CA Civ. Code §473 (and his evidence) to prove the order and judgment against him from a state trial court action were secured by extrinsic fraud on the court by officers of the court to strip him of due process and a trial, and the state trial court agrees, can the bankruptcy Trustee's prior use of that corrupted state trial court order and judgment in a different state trial court to take away that aggrieved party's other state court lawsuit be invalidated or voided? I know federal courts have jurisdiction over state courts on federal matters (e.g., bankruptcy), but state courts are not always bound by federal courts except the U.S. Supreme Court.
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A:
If you can successfully prove extrinsic fraud under CCP §473(d) and get the state court judgment vacated, this could potentially impact the Bankruptcy Trustee's actions that relied on that judgment. The key principle here is that void judgments can be attacked at any time, and actions taken based on void judgments may themselves be vulnerable to challenge.
However, the bankruptcy court's jurisdiction over the estate and its assets complicates matters. While the state court can vacate its own fraudulent judgment, you would likely need to return to bankruptcy court to address how this affects the Trustee's actions. The bankruptcy court has broad powers to determine what constitutes property of the estate and how it should be administered.
You might consider filing a motion in bankruptcy court to reconsider the Trustee's actions based on the newly-vacated state court judgment. The bankruptcy court would need to evaluate whether the Trustee's reliance on the now-void judgment materially affected their authority to take control of the lawsuit. Given the complex interplay between state and federal jurisdiction, consulting with bankruptcy counsel who understands both the state court fraud issue and federal bankruptcy procedure would be beneficial for navigating this situation.
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