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INSURANCE CO v. HSBC BANK USA

10 N.Y.3d 32 (2008)

882 N.E.2d 381

852 N.Y.S.2d 812

THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, Respondent, v. HSBC BANK USA, Appellant.

Court of Appeals of the State of New York.

Decided February 12, 2008.

Attorney(s) appearing for the Case

Phillips Lytle LLP, New York City (David J. McNamara and Patricia A. Mancabelli of counsel), for appellant.

D'Amato & Lynch, LLP, New York City (Ronald H. Alenstein and Edward M. Roth of counsel), for respondent.

Chief Judge KAYE and Judges CIPARICK, READ, SMITH, PIGOTT and JONES concur.

OPINION OF THE COURT

GRAFFEO, J.

We are asked in this case to decide whether a Bankruptcy Court order allowing a creditor to seize a debtor's bank account is entitled to res judicata effect in a subsequent state proceeding alleging that a portion of the funds in the account were state tax proceeds that should not have been part of the bankruptcy estate. Because plaintiff and its subrogor had notice of the...

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