Trikona Advisers Limited v. Chugh, No. 14-975 (2d Cir. 2017)Annotate this Case
TAL challenges the district court's grant of summary judgment to the Chugh Defendants. The district court held that TAL's claims for breach of fiduciary duty by Chugh had previously been determined in Chugh's favor in a prior proceeding and thus TAL was collaterally estopped from asserting them. The court concluded that Chapter 15 of the Bankruptcy Code does not apply when a court in the United States simply gives preclusive effect to factual findings from an otherwise unrelated foreign liquidation proceeding, as was done here; the district court properly applied the doctrine of collateral estoppel where the affirmative defenses in the wind-up proceeding are based in substance on the same allegations made in the Third Amended Complaint; TAL's contention that findings of fact made by the Cayman court cannot have preclusive effect in the district court proceeding are meritless; and TAL's comity argument also lacks merit. Accordingly, the court affirmed the judgment.