Phillips v. Kelley

Charles Phillips and RJK Investments, LLC, appealed a circuit court's order dismissing with prejudice all of its claims pursuant to a compromise and settlement order entered in the United States Bankruptcy Court. Phillips, through RJK, owned and managed a restaurant franchise. After a fire damaged the restaurant, Defendants Joey Kelley and other creditors attempted to seize control of the remaining assets. Phillips and RJK sued the creditors on multiple grounds. While this case was pending, Phillips individually filed for Chapter 7 bankruptcy. The bankruptcy court's order plainly directed the trustee to execute an Order of Dismissal as to all claims in this action. The order released the defendants from any further responsibility and liability, which necessarily would include any claims of RJK. Accordingly, the Supreme Court found that the trial court did not err in dismissing Phillips' and RJK's suit. View "Phillips v. Kelley" on Justia Law