- 6 -
may be rendered as a matter of law." Rule 121(b). On the record
before us, there is no genuine issue as to any material fact, and
summary judgment should be granted.
The Supreme Court in Commissioner v. Sunnen, 333 U.S. 591,
597 (1948), explained that the doctrine of res judicata is one of
judicial economy that, in general, prevents parties involved in
prior litigation from relitigating a cause of action once a final
judgment on the merits of the cause of action is rendered by a
court of competent jurisdiction. See also Freytag v.
Commissioner, 110 T.C. 35, 44-45 & n.7 (1998) (if the bankruptcy
court first decides the common tax issue, its decision is to be
binding upon this Court under principles of res judicata).
Petitioners and respondent both were parties in the
litigation before the Bankruptcy Court. Moreover, on at least
two occasions, petitioners represented to the Bankruptcy Court
that they agreed to be bound by its final order. The Bankruptcy
Court had jurisdiction to determine petitioners' Federal income
tax liabilities for the years in issue, and it did so. The
Bankruptcy Court's order, dated September 16, 1993, allowing
respondent's claims and setting out the specific amounts of
Federal income taxes owed by petitioners for each of the years in
issue, constituted a final and appealable judgment. Florida
Peach Corp. v. Commissioner, 90 T.C. 678, 682-683 (1988).
Petitioners appealed to the District Court and then to the
Eleventh Circuit. The Eleventh Circuit's dismissal of the appeal
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