Facts

Plaintiff Jeffrey I. Golden, in his capacity as trustee of Aletheia Research and Management, Inc., filed a lawsuit against Aletheia's former counsel, O'Melveny & Myers LLP, and two O'Melveny attorneys alleging professional negligence and breach of fiduciary duty, as well as bankruptcy-law claims for avoidance and recovery of alleged preferential transfers and fraudulent conveyances, i.e., payments made to O'Melveny for attorneys' fees and costs. The court compelled the professional negligence and breach of fiduciary duty claims to arbitration. After a 12-day evidentiary hearing, the arbitrator issued a final award in favor of defendants. After the district court thereafter confirmed the arbitration award, defendants moved for summary judgment on the bankruptcy-law claims.

PLAINTIFF'S CONTENTIONS: Plaintiff contended defendants received payments for attorneys' fees and costs that constituted preferential transfers and fraudulent conveyances avoidable and recoverable under the Bankruptcy Code.

DEFENDANT'S CONTENTIONS: Defendants asserted, among other things, that the arbitration that resolved plaintiff's professional negligence and breach of fiduciary duty claims collaterally estopped plaintiff from pursuing the preferential transfer and fraudulent conveyance claims, which were based on certain factual allegations that had been rejected by the arbitrator.

Result

The court granted defendants' motion for summary judgment.