Robert B. Marks, Bankrupt-Appellant v. Milton Brucker, Creditor-Appellee

On May 21, 1965, Brucker sued Marks and Marks’ wife in a state court for $127,195.21 due on a guaranty. On June 15, 1965, Marks filed a petition in bankruptcy. On August 26, 1965, Brucker filed his proof of claim in bankruptcy for the same amount, attaching a copy of the state court complaint as an exhibit. On October 25, 1965, Marks was granted a discharge in bankruptcy. In the meantime, the prosecution of the state court' action continued against Marks et ux. The bankruptcy trustee did not become a party to the action. On July 25, 1966, a settlement agreement was executed and on April 18, 1967, the state action was dismissed with prejudice. On April 11, 1968, the bankrupt, Robert B. Marks, filed a written objection to three different creditors’ claims filed against the bankrupt estate, one being the Brucker claim, on the ground “that said claim has heretofore been released, pursuant to the terms of a written agreement of the parties.” The Agreement and Release which preceded the dismissal with prejudice of the state court action was entered into between Milton Brucker and his wife “the plaintiffs” and Robert B. Marks and his wife “the defendants.” It purported to be a mutual…