Davis v. Belloc (In re Regional Care Services Corp.)

Case Type:
Business
Case Status:
Affirmed
Citation:
BAP No. AZ-16-1213-JuLB (9th Circuit, Jul 05,2017) Not Published
Tag(s):
Ruling:
Creditor with medical malpractice claim against the debtor was allowed to file a late proof of claim, and was granted relief from stay to pursue a state court lawsuit. Evidence that Creditor had received Notice of the Claims Bar Date was not fully provided to the court until after the bankruptcy court's initial ruling, and was brought in connection with a Motion for Reconsideration, which was too late.
Procedural context:
9th Cir. BAP affirmed order of the bankruptcy court denying reconsideration under FRCP 59(e) of its allowance of a late-filed proof of claim and granting of relief from stay.
Facts:
Creditor held medical malpractice claim against the debtor medical center (as well as individual doctors). Creditor denied getting notice of the Claims Bar Date. A Chapter 11 Plan was confirmed. Creditor then sought to pursue his claim against the debtor. The Creditor Trustee appointed under the Plan objected, arguing that the Creditor got notice and that late allowance would prejudice the estate and creditors. Creditor Trustee provided evidence that Creditor was served, but the actual proof of service that the Creditor Trustee provided to the court at the time of the initial hearing had the Creditor's address redacted (due to HIPPA). Thus, the court found there was some inconsistency in the evidence and allowed the late claim. Creditor Trustee then filed the unredacted proof of service under seal in connection with a Motion for Reconsideration, but the court held that this was not new evidence and could not be brought later on Motion for Reconsideration.
Judge(s):
JURY, LAFFERTY, and BRAND, Bankruptcy Judges

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