In monster-truck bankruptcy, courts errantly denied ex-wife’s claim

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Federal Bankruptcy and District courts wrongly denied a woman’s claim against the estate of her ex-husband and business partner who owed her money after they divorced and unwound a monster-truck business for which she had lent money.

In Dawn Marie Adams v. James Gregory Adams, 13-1636, the 7th Circuit Court of Appeals Friday ruled that Judge William T. Lawrence of the District Court for the Southern District of Indiana improperly affirmed a Bankruptcy Court ruling denying Dawn Adams’ petition. Numerous Georgia court rulings said her ex-husband, Greg, owed her at least $74,000. He filed for bankruptcy after the judgments.

“The state courts of Georgia decided three times in three final judgments that Greg still owed money to Dawn after they divorced and unwound their ‘monster truck’ business,” Judge David Hamilton wrote for the panel. “The bankruptcy court heard evidence on the merits of Dawn’s claim, though, and denied it as inequitable.

“We find that the issues concerning the validity of Dawn’s claim were previously adjudicated in the state courts and that the doctrine of issue preclusion prevented the bankruptcy court from rehearing those issues. Accordingly, we reverse and remand for proceedings.”

"Dawn seeks in the bankruptcy only what the (Georgia) court determined she was owed," Hamilton wrote. "(T)hough Greg Adams had the opportunity to appeal the Georgia state court judgments, he did not avail himself of that opportunity. Instead, he filed for bankruptcy, but that is not a substitute for timely appeals of the state court judgments.

“The doctrine of issue preclusion (collateral estoppel) bars him from using the bankruptcy system to have his defenses reheard despite the state courts’ rejection of those defenses.”

The suit arises from the Southern District, Terre Haute Division, because Dawn Adams relocated to Putnam County, Ind., after the couple divorced. The monster truck in which the couple had invested is known as “Annihilator,” the opinion notes.


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.