Alderwoods Group, Inc. v. Garcia

Summarized by Jennifer Kimble , Eversheds Sutherland LLP
13 years 9 months ago

Citation:

Alderwoods Group, Inc. v. Garcia, et al., Case No. 10-14726 (11th Cir. May 30, 2012) (published)

Tag(s):

Ruling:

The judgment of the United States District Court for the Southern District of Florida ("District Court") is vacated because the United States Bankruptcy Court for the Southern District of Florida ("Florida Bankruptcy Court") lacks jurisdiction to enforce a post-confirmation discharge injunction entered by the United States Bankruptcy Court for the District of Delaware ("Delaware Bankruptcy Court").

Procedural context:

Appeal from the decision of the District Court affirming the order of the Florida Bankruptcy Court that certain claims of creditors Reyvis Garcia, Ramona Johnson and Mercedes Woodberry ("Creditors") had not been discharged in the Alderwoods Group, Inc. ("Debtors") chapter 11 bankruptcy case ("Chapter 11 Case") previously filed in the Delaware Bankruptcy Court.

Facts:

Debtors, Alderwoods Group, Inc., at al. filed their Chapter 11 Case in the Delaware Bankruptcy Court on June 1, 1999. The Notice of Bar Date in the Debtors' Chapter 11 Case was mailed to all known creditors and published in the Wall Street Journal, the New York Times and the USA Today. On December 5, 2001, the Delaware Bankruptcy Court entered an order confirming the Debtors' plan of reorganization. The Confirmation Order discharged all claims against the Debtors, including unknown claims that arose before the Plan's January 2, 2002 effective date, and provided that the Delaware Bankruptcy Court retained jurisdiction over the reorganization after the Plan's effective date. In March 2008, the Creditors filed a class action complaint against the Debtors in the Circuit Court for Miami-Dade County, Florida ("State Court") for damages because, due to inadequate record keeping, the Debtors were not able to locate the grave sites of family members and close relatives buried in one of Debtors' cemeteries. The Creditors' claims were based on the theories of tortious interference with dead bodies, intentional or reckless infliction of emotional distress, and gross negligence under Florida law. On April 7, 2008, the Debtors filed a complaint against the Creditors in the Florida Bankruptcy Court seeking a declaration that the claims of the Creditors had been discharged in the Debtors' Chapter 11 case pursuant to sec. 1141 of the Bankruptcy Code and an order entered, pursuant to sec. 524 of the Bankruptcy Court enjoining the Creditors from pursuing their state court claims. The Creditors claimed that the bar date notice published in the Debtors' Chapter 11 Case was constitutionally inadequate and therefore their claims had not been discharged in the Debtors' Chapter 11 Case.

Judge(s):

TJOFLAT and MARTIN, Circuit Judges, and Robert T. DAWSON, United States District Judge for the Western District of Arkansas, sitting by designation

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