Case Summary:
Debtor and chapter 11 trustee objected to claims filed by various casinos, all of which consisted of “markers” owed for gambling debts incurred by the debtor pre-petition. None of the claims had been reduced to judgment in Nevada, and the objecting parties contended that as gambling debts are unenforceable under Wisconsin law, the claims should be disallowed. The bankruptcy court (378 B.R. 575) sustained the objections, ruling that under choice of laws principles Wisconsin law would apply, and that under Wisconsin law the debts would be unenforceable. On appeal, the district court ruled even if Wisconsin choice of law principles applied, Wisconsin courts would apply Nevada law, thus rendering the debts enforceable. The bankruptcy court’s order was reversed.

Statute/Rule References:
11 U.S.C. § 502 -- Allowance of Claims or Interests

Key Terms:
Claims - Allowance