IN RE FIDELITY AMERICA FINANCIAL CORP.

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

63 B.R. 995 (1986)

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.

August 28, 1986.


Attorney(s) appearing for the Case

Don P. Foster, 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.

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

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.

Norman M. Kranzdorf, Cynwyd, Pa., Trustee.


OPINION

EMIL F. GOLDHABER, Chief Judge.

The issue presented in the case under adjudication is whether we should grant the trustee's request for an injunction barring a creditor from continuing with a state court suit, on the allegation that we previously approved a settlement of the dispute at issue. For the reasons outlined below, we conclude that the injunction should issue.

The facts of this case are as...

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