Over one month ago, we had a big hearing in a big fight over the following facts:
A.) There was an adversary proceeding in a chapter 11 case ("Case 1").
B.) The adversary proceeding was settled during the chapter 11 case.1
C.) The non-debtor party defaulted under the stipulation.
D.) The chapter 11 case was dismissed without preserving any entered orders.2
E.) Two years later, the same debtor filed a chapter 7 case ("Case 2").
F.) The Case 2 chapter 7 trustee is suing for the debtor's rights under the Case 1 stipulation.We say, "No way!" Why?