ÿWPCà ># tUN %Í 0(Ów@û4;OUN^UH¬ 0cô AQW 0ª¨ 0DRb–ž 0J¦ 0Tð 0^D 0h¢ 0r B| Æ™ 0D_ 0@£ 0Dã 0|' D/£ 0†Ò BX D3u 0¨ 1u8 0d­ U >U*OU6yB)¯DCØ AMU*h’V•¤ëv~vÓ ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX($¡¡ ñUòUóDôõDö÷DøùÓ€WX$3|x(ÈhH  Z ‹6Times New Roman Regular<ãÎ ,9Z 0Courier (W1) Regular("*‡$Ô‡X¼XXXÔòòÚ  Ú0Ú  Úóó !"#%Cþÿ<< Cÿÿ(Z(20$¤¤Ý ƒ!ÝÝ  ÝÔ€X¯XXXÔÔ€X¯XXX¯Ôà  àòòÚ  Ú0Ú  Úóó(3¯$©©Ý ƒ!ÝÝ  Ý- ù-2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô dƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô'''÷ÿ dxd2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  ÔüÿP Pd'ÿÿdxd2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô$&) ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Times< Œ 9p`(Courier New% Line 7 d55557Border 1dd "6Cþÿ << Gÿÿ< Œ 9p`(Arial ùÝ ƒ!ÝÔ€2ÔÝ  ÝÝ ƒ!"ÝÝ  ÝÔ€8ÔÔ€8ÔÓ  ÓÔ YYY ÔFILEDÔ€8XÔÌÌò òApril€6,€1998ÌÌCecil€Crowson,€Jr.ÌÔ€8ôÔAppellate€Court€Clerkó ó LÝ ƒ!ÝÔ€2ÔÝ  ÝÝ ƒ)ÝÝ  ÝÌÌÌ šÝ ƒ!ÝÑ#€d#ÑÔ€2ÔÝ  ÝÝ ƒ $ÝÔ€2ÔÔ€2XÔà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€4ÔÔ€4ôÔNot€only€did€Mitchell€assert€that€the€amount€owed€was€almost€half€asÏmuch€as€what€the€defendants€claimed,€he€also€alleged€that€Reynolds€promised€toÏforgive€the€debt€upon€her€death.ÌPtPtHHÚ(ÿáÿáùEG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€2ÔÝ  ÝØ ØÓ&€33XÐd&ÓÔ€4ÔÑ\R AØ'\ÑÞ ÞÌà àà àà àà àà àà àà àà àà àApril€6,€1998Ìà àà àà àà àà àà àà àà àà àòòFOR€PUBLICATIONóóÌÌÙ€ ÙßR€796A1-j|¾` Å `€€@ÿRßÌà@ àIN€THE€SUPREME€COURT€OF€TENNESSEEÌÌà@ àAT€JACKSONÌÌÌÌJUANITA€MITCHELL,€PERSONALà à(ÌREPRESENTATIVE€OF€THE€ESTATE€à à(ÌOF€BILLY€GWINN€MITCHELL,à àà à(Ìà àà àà àà àà àà à(Ìà àPlaintiff„Appellant,à à(€€Shelby€ChanceryÌà àà àà àà àà àà à(Ìà àà àà àà àà àà à(€€Hon.€Russell€Fowler,€Ìà àà àà àà àà àà à(€€Special€Chancellor›Ìv.à àà àà àà àà àà à(Ìà àà àà àà àà àà à(€€No.€02S01„9703„CH„00020Ìà àà àà àà àà àà à(Ìà àà àà àà àà àà à(ÌSAM€F.€COLE,€JR.,€SUBSTITUTEà à(ÌTRUSTEE,€ESTATE€OF€PRUDENCE€à à(ÌREYNOLDS,€AND€GERALD€W.€à àà à(ÌPICKENS,€ADMINISTRATOR,à àà à(Ìà àà àà àà àà àà à(Ìà àDefendants„Appellees.à à(ÌÌÌÌòòFor€Plaintiff„Appellantóó:à àà àà àà àòòFor€Defendants„Appelleesóó:ÌÌJames€Stephen€Kingà àà àà àà àà àSam€F.€Cole,€Jr.ÌArthur€E.€Quinnà àà àà àà àà àMemphisÌThe€Bogatin€Law€Firm,€PLCÌMemphisÌÌÌÌÌÌ̛̜Ìà@ àòòò òO€P€I€N€I€O€Nóóó óÌÌÌÌÌÌ̛̜ÌÌÌÌÌJUDGMENT€OF€COURT€OF€APPEALS€ÌMODIFIED€AND€CASE€REMANDED.à àà àà àà àà àœREID,›€œSp.€J.ÌÒ ° ÒÒ À ÒÖ€:ÖÓ` Ü` ˜XÓÓÓ›à àThis€case€presents€for€review€the€decision€of€the€Court€ofÏAppeals€that€a€debtor€cannot€collaterally€attack€in€state€court€anÏadjudication€made€in€a€Chapter€11€bankruptcy€proceeding€Ñ7€ ¬; XXdÈXXdð7ÑÑ€ÑÑ  ÑregardingÏthe€balance€due€on€a€debt€owed€by€the€debtor„bankrupt.€€The€judgmentÏof€the€Court€of€Appeals€is€affirmed€as€modified.€€ÌÌà@ àò òIó óÌÌà àIn€1973€Prudence€Reynolds,€now€deceased,€sold€a€farm€toÏthe€appellant,€Billy€Gwin€Mitchell.€€Incident€to€the€sale,€MitchellÏexecuted€a€promissory€note€in€the€principal€amount€of€$134,140.71Ïpayable€to€Reynolds€in€240€equal€monthly€installments€of€$1,040.00,Ïprincipal€and€interest.€€The€promissory€note€was€secured€by€a€deedÏof€trust€on€the€farm.€€ÌÌà àOn€April€6,€1983,€Mitchell€filed€a€voluntary€petition€forÏreorganization€pursuant€to€Chapter€11€of€the€Bankruptcy€Code.€ÏApparently,€Mitchell€made€some€payments€on€the€note€prior€to€hisÏfiling€the€bankruptcy€petition.€€On€June€13,€1984,€the€bankruptcyÏcourt€entered€an€order€confirming€Mitchellððs€reorganization€plan€asÍamended.€€The€amended€plan€allowed€Reynolds€a€secured€claim€in€theÏprincipal€amount€of€$102,902.28.€€With€respect€to€the€terms€of€theÏpayment€of€the€debt,€the€amended€plan€provided:ÌÌÓÓà8 àThe€secured€claim€of€Mrs.€J.€P.€ReynoldsÏ(ð ðReynoldsðð)€shall€be€fully€settled,€satisfied,Ïand€discharged€by€paying€Reynolds€the€remainingÏsums€due€in€accordance€with€the€terms€of€herÏPromissory€Note€and€Deed€of€Trust;€except€that,Ïthe€terms€of€said€Note€shall€be€extended€by€aÏperiod€equal€to€the€number€of€months€that€saidÏNote€is€in€arrears.€€The€first€installment€shallÏbe€due€and€payable€upon€confirmation€with€aÏsimilar€payment€being€due€and€payable€each€monthÏthereafter€until€said€Note€shall€have€been€paidÏin€full.€€Reynolds€shall€retain€her€lien€uponÏthe€Debtorððs€144€acre€œfarm.›ÌœÌÌ›ÌÓÓà àThe€record€shows€that€subsequent€to€confirmation€of€theÏamended€plan,€Mitchell€paid€to€Reynolds€in€cash€$27,353.25.€€€Ìà àÌà àOn€January€25,€1988,€Mitchell€filed€an€interim€report€inÏthe€bankruptcy€case.€€In€the€section€entitled€ð ðTotal€Amount€ofÏClaims€Allowed,ðð€the€report€reflects€the€principal€amount€ofÏReynoldsðð€claim€remained€at€$102,902.28.€€Reynolds€died€on€June€10,Ï1988Ô€2ÔÔ€2¼Ô.€€Ô€4ÔÔ€4XÔ€After€her€death,€Mitchell€made€no€further€payments€on€theÏnote.€€The€final€report,€filed€November€10,€1988,€is€virtuallyÏidentical€to€the€interim€report€and€sets€forth€the€same€amount€forÏReynoldsðð€claim.€€On€January€13,€1989,€the€bankruptcy€court€enteredÍa€final€decree€closing€Mitchellððs€case.ÌÌà àAfter€Mitchell€and€Gerald€W.€Pickens,€executor€ofÏReynoldsðð€estate,€were€not€able€to€agree€on€the€amount€owed,Ïdefendant€Sam€F.€Cole,€Jr.,€substitute€trustee€under€the€deed€ofÏtrust,€gave€Mitchell€written€notice€that€the€entire€balance€on€theÏnote€was€due€and€payable€and€made€demand€for€$113,832.70,€principalÏand€accrued€interest,€plus€$17,074.80€for€attorneyððs€fees.ÌÌà àOn€August€29,€1989,€Mitchell€filed€a€complaint€for€aÏtemporary€restraining€order€and€for€temporary€and€permanentÏinjunctions€to€stop€the€foreclosure.€€Mitchell€contended€that€he€hadÏan€oral€agreement€with€Reynolds€as€to€payment€of€the€note€throughÏgoods€and€services€to€her.€€According€to€Mitchell,€the€value€ofÏthese€goods€and€services,€as€well€as€cash€payments€made€to€Reynolds,Ïreduced€the€balance€due€to€$66,330.18.€€In€the€counter„complaint,Ïthe€defendants€alleged€that€Mitchell€owed€the€principal€sum€ofÏ$102,092.28,€as€reflected€in€the€final€report€of€his€Chapter€11Ïbankruptcy€case,€plus€interest€and€attorney€fees.€€In€answer€to€theÏcounter„complaint,€Mitchell€asserted€that€the€amount€stated€in€hisÏbankruptcy€proceeding€was€erroneous.ÌÌà àPrior€to€trial,€the€trial€court€granted€the€defendantsððÍmotion€in€limine€prohibiting€Mitchell€from€presenting€evidenceÏconcerning€oral€statements€made€by€Reynolds€prior€to€her€death€inÏregard€to€the€note.× ƒ; ××  ×€€€At€trial,€Mitchell€testified€that€he€had€aÏvery€close€relationship€with€Reynolds,€his€aunt,€and€that€he€boughtÏthe€farm€to€provide€her€with€a€continuous€stream€of€income€for€theÏrest€of€her€life.€€Over€repeated€objections€by€the€defendantsððÏcounsel,€Mitchell€and€other€witnesses€were€allowed€to€testify€thatÏvarious€goods€and€services€were€provided€to€Reynolds€by€aÏpartnership€which€was€owned€by€Mitchell€and€his€sisters.€€IncludedÏin€the€claimed€services€was€$40,000.00€for€providing€lodging€andÏwages€for€the€decedentððs€ð ðgrounds€keeperðð€over€a€period€of€someÏeight€years.€€The€jury€found€that€Mitchell€owed€$41,101.64€on€theÏnote€and€$21,900.00€in€attorneyððs€fees.€€ÌÌà àThe€defendants€appealed,€alleging€that€the€trial€courtÏerred€in€instructing€the€jury€to€consider€ð ðpaymentsðð€made€by€theÏpartnership€to€Reynolds€on€Mitchellððs€behalf€and€in€allowingÏtestimony€regarding€alleged€payments€on€the€note.€€The€Court€ofÏAppeals€reversed,€holding€that€the€evidence€of€the€payments€wasÏinadmissible€because€the€bankruptcy€proceeding€established€theÏoutstanding€balance€on€the€note€as€of€the€date€of€the€final€decree.€ÍThe€case€was€remanded€to€the€trial€court€for€a€hearing€to€determineÏthe€amount€of€payments€made€by€Mitchell€from€the€date€of€the€finalÏdecree€until€the€date€of€trial,€plus€all€accrued€interest.€Ì€à àà8 àà àà8 àÔ€4¼ÔÌÓ  Óò òÔ€4XÔà àIIÌÌÓ  Óà àó óAppellant€Mitchellððs€position€is€not€entirely€clear.€€InÏthe€Court€of€Appeals,€he€contended€that€the€bankruptcy€court€hadÏerred€in€determining€the€principal€balance€owed€to€be€$102,902.28.€ÏHe€attributed€the€ð ðmistakeðð€to€a€misunderstanding€with€his€attorneysÏin€the€bankruptcy€proceedings.€€On€this€appeal,€Mitchell€takes€theÏposition€that€the€amount€set€forth€in€the€amended€plan,€which€wasÏconfirmed€by€the€bankruptcy€court€on€June13,€1984,€established€theÏbalance€due€the€decedentððs€estate€on€that€date.€€He€further€contendsÏthat€the€claimed€credits€for€payments€and€services€should€be€appliedÏto€the€$102,902.28€debt,€leaving€a€balance€of€$41,101.64.€€HeÏasserts€that€the€reports€filed€by€him€subsequent€to€the€orderÏconfirming€the€plan€do€not€have€the€same€legal€effect€as€theÏconfirmed€plan€and€that€those€reports€are€not€òòresóó€òòjudicataóó.€€ÌÌà àSection€1141€of€the€Bankruptcy€Code€sets€forthÔ€4¼Ô€Ô€4XÔtheÏconsequences€of€the€confirmationÔ€4¼Ô€of€a€Ô€4XÔChapter€11€plan.Ô€4¼Ô€€Ô€4XÔPursuant€toÏ11€U.S.C.€ðð€1141(a),€ð ðthe€provisions€of€a€confirmed€plan€bind€theÍdebtor€.€.€.€and€any€creditor€.€.€.€[of]€the€debtor.ðð€€UnlikeÏChapter€13,€which€delays€discharge€until€the€debtor€has€met€hisÏobligations€under€the€plan,€11€U.S.C.€ðð€1328,€confirmation€of€aÏChapter€11€plan€operates€as€a€discharge.€€11€U.S.€C.€ðð€1141(d).ÌÌà àThe€federal€courts€have€consistently€upheld€the€bindingÏeffect€of€the€provisions€of€a€Chapter€11€plan.€€œIn€òòIn›€re€Dooleyóó,€116ÏB.R.€573,€580€(Bankr.€S.D.€Ohio€1990),€the€court€held€that€theÏChapter€11€debtor€was€precluded,€under€the€judicial€concepts€ofÏclaim€and€issue€preclusion€and€the€specific€provisions€of€SectionÏ1141€of€the€Bankruptcy€Code,€from€relitigating€the€amount€orÏapplication€of€his€preconfirmation€payments€to€a€creditor.€€œIn€òòIn›€reÏChattanooga€Wholesale€Antiques,€Inc.óó,€930€F.2d€458,€463€(6th€Cir.Ï1991),€the€court€stated:à àà8 àà8 àÌÌÓÓà8 àConfirmation€of€a€plan€of€reorganization€by€theÏbankruptcy€court€has€the€effect€of€a€judgment€byÏthe€district€court€and€res€judicata€principlesÏbar€relitigation€of€any€issues€raised€or€thatÏcould€have€been€raised€in€the€confirmationÏproceedings.ÌÌÓÓÌà àThus,€in€the€present€case,€Mitchell€is€bound€by€theÏprovisions€of€his€confirmed€Chapter€11€plan€establishing€$102,902.28Ïas€the€outstanding€principal€balance€on€the€note€as€of€June€13,Ï1984,€the€date€of€the€order€of€confirmation.Ô€4¼ÔÔ€2Ô€€Ô€4ÔÔ€4XÔ€PreconfirmationÍpayments€in€goods€and€services€are€irrelevant€because€the€court€mustÏaccept€$102,902.28€as€the€outstanding€balance€as€of€the€date€of€theÏconfirmation€order.€€The€trial€court€erred€in€allowing€Mitchell€toÏpresent€evidence€about€alleged€payments€in€goods€and€services€madeÏprior€to€confirmation.€€ÌÌà àIn€rectifying€this€error,€the€Court€of€Appeals€improperlyÏlimited€the€proof€to€the€amount€of€payments€made€after€the€finalÏdecree.€€The€Court€of€Appeals€failed€to€distinguish€between€paymentsÏmade€by€Mitchell€prior€to€the€date€of€the€confirmation€order€andÏthose€made€subsequent€to€the€date€of€that€order.€€That€courtÏerroneously€relied€on€the€final€report€to€determine€the€amount€owedÏat€the€conclusion€of€the€bankruptcy€proceeding.€€The€final€reportÏdoes€not€purport€to€state€the€amount€of€the€debt€as€of€the€date€ofÏthe€filing€of€the€report,€nor€does€it€show€payments€made€to€securedÏcreditors€after€confirmation€of€the€Chapter€11€plan€in€1984.€€TheÏreport€merely€restates€the€amount€of€secured€claims€allowed€underÏthe€confirmed€plan.€€The€report€cannot€be€òòresóó€òòjudicataóó€because€it€isÏnot€an€order€of€the€court.€€The€final€decree€also€is€not€òòresóóÏòòjudicataóó;€the€order€of€confirmation€is€the€controlling€order.€€TheÏfinal€decree€merely€closes€the€case€after€the€estate€has€been€fullyÏadministered.€€òòSeeóó€Fed.€R.€Bankr.€3022.€€œIn€òòIn›€re€GreaterÏJacksonville€Transportation€Co.óó,€169€B.R.€221,€224€(Bankr.€M.D.€Fla.Í1994),€the€court€stated:ÌÌÓÓà8 àà àEven€a€cursory€reading€of€this€last€RuleÏ[Fed.€R.€Bankr.€3022]€leaves€no€doubt€that€theÏentry€of€a€final€decree€is€merely€a€perfunctory,Ïadministrative€event€and€nothing€more€than€aÏministerial€housekeeping€act€which€was€neverÏdesigned€to€determine€with€finality€theÏsubstantive€rights€of€parties€of€interestÏinvolved€in€a€Chapter€11€case.€€This€should€beÏevident€from€the€fact€that€the€final€decree€isÏentered€without€notice€and€hearing€to€anyone€andÏcould€be€entered€even€on€the€Courtððs€own€motion.ÌÌÓÓÌà àOn€remand,€the€court€should€determine€the€amount€ofÏcredits€due€since€the€date€of€the€order€confirming€the€amendedÏreorganization€plan.€€Whether€Mitchell€is€entitled€to€credits€on€theÏdebt€for€goods€and€services€œrendered€subsequent€to€the€date€of€theÏorder€of€confirmation€is›€a€question€to€be€determined€in€the€trialÏcourt.ÌÌÓ  Óò òIIIó óÌÓ  ÓÌà àThis€decision€is€limited€to€the€holding€that€only€theÏdeterminations€made€in€the€confirmed€amended€plan€of€reorganization,Ïnot€the€subsequent€reports€by€the€debtor€in€possession,€œare›€òòresóóÏòòjudicataóó.€€With€regard€to€the€reports€made€by€Mitchell€as€debtor€inÏpossession€subsequent€to€the€confirmation€of€the€amended€plan,€theÍonly€issue€resolved€by€this€Court€is€that€those€reports€are€not€òòresóóÏòòjudicataóó.€€The€case€obviously€presents€myriad€issues€of€law€andÏevidence€to€be€resolved€on€remand.€€ÌÌà àThe€judgment€of€the€Court€of€Appeals€is€affirmed€asÏmodified,€and€the€case€is€remanded€to€the€trial€court€for€furtherÏproceedings.ÌÌà àCosts€are€taxed€one„half€to€the€appellant€and€one„half€toÏthe€defendant€estate.€€€ÌÌÓÓà0 àà0 àà àà àà à_______________________________Ìà àà àà àà àà àœLyle€Reid,›€œSpecial€Justice›ÌÌConcur:ÌÌAnderson,€C.J.,€Drowota,€and€Holder,€JJ.ÌÌBirch,€J.€„€Not€participating.