Bellingham Insurance Agency, I v. Peter Arkison

Petitioner-Appellant Nicholas Paleveda (“Paleveda”) appeals from the judgment of the Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”) affirming a federal bankruptcy court’s order directing the disbursement of funds accruing under an Independent Management Organization Agreement (“IMO Agreement”) with Lafayette Life Insurance Company (“Lafayette”) to Charles Farrington (“Farrington”). We have jurisdiction under 28 U.S.C. § 158 (d), and we affirm.

We review decisions of the BAP de novo and apply the same standard of review that the BAP applied to the bankruptcy court’s ruling. In re Boyajian, 564 F.3d 1088, 1090 (9th Cir.2009). We review the bankruptcy court’s conclusions of law de novo and its findings of fact for clear error. In re Salazar, 430 F.3d 992, 994 (9th Cir.2005).

The bankruptcy court determined that Paleveda’s claim was precluded by the prior judgment of the Superior Court of Washington for Whatcom County. Where the issue preclusion effects of a Washington state court judgment are raised, we apply the state of Washington’s issue preclusion law. See Diruzza v. County of Tehama, 323 F.3d 1147, 1152 (9th Cir.2003). An issue is precluded by a Washington state court…