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IN RE FIDELITY AMERICA FINANCIAL CORP.

Bankruptcy Nos. 81-00385G to 81-00388G, Adv. No. 85-0273G.

53 B.R. 930 (1985)

In re FIDELITY AMERICA FINANCIAL CORPORATION, (Jointly Administered With) Fidelity America Mortgage Co. (a Pennsylvania Corporation), Fidelity America Mortgage Co. (a Delaware Corporation), Fidelity America Mortgage Co. (a Nevada Corporation), Debtors. Norman M. KRANZDORF, Individually and as Trustee for Fidelity America Mortgage Company, Plaintiff, v. Irving G. ALTER and United Funding Corporation and Alvin Lapidus, P.A. and Alvin Lapidus for Maryland Developers, Inc. and Birmingham Fire Insurance Company of Pennsylvania and U.S. Shelter Corporation and Francis R. Caplan & Co. and Stone-East Associates, Inc., Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

October 18, 1985.

Attorney(s) appearing for the Case

Robert Szwajkos, Rubin, Quinn & Moss, Philadelphia, Pa., for plaintiff, Norman M. Kranzdorf, Individually and as Trustee for Fidelity America Mortg. Corp.

Leonard C. Redmond, III, Horn, Dressel & Bennett, P.A., Baltimore, Md., for Irving G. Alter, United Funding Corp., Alvin Lapidus, P.A. and Alvin Lapidus for Maryland Developers, Inc.

Thomas B. Kenworthy, Mark M. McGuire, Morgan, Lewis & Bockius, Philadelphia, Pa., for Irving G. Alter, United Funding Corp., Alvin Lapidus, P.A., Alvin Lapidus for Maryland Developers, Inc., Birmingham Fire Ins. Co. of Pennsylvania, U.S. Shelter Corp.

Martin J. Snider, Manis, Wilkinson, Snider & Goldsborough, Annapolis, Md., for Birmingham Fire Ins. Co. of Pennsylvania and U.S. Shelter Corp.

Francis R. Caplan & Co., Hartford, Conn., Stone-East Associates, Inc., New York City, Norman M. Kranzdorf, Bala Cynwyd, Pa., Trustee.

OPINION

EMIL F. GOLDHABER, Chief Judge:

The essence of this dispute is whether we should grant a creditor's motion to dismiss a complaint filed by the trustee in which the trustee seeks an injunction barring that creditor from continuing with a state court suit, although it appears that we previously approved a settlement of the dispute at issue. For the reasons expressed below, we conclude that the complaint should not be dismissed.

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