Leonard Thomas v Corizon Health, Inc.
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 6 months 3 weeks ago
- Case Type:
- Business
- Case Status:
- Dismissed
- Citation:
- No. 25-1275 (7th Circuit, Jul 31,2025) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the 7th Circuit dismissed Claimant’s appeal after he did not respond to Debtor’s service of documents regarding his tort claim. Proper service depends on the receipt of documents, not the recipient’s understanding of the meaning and significance of the documents received. Claimant could have sought relief through the bankruptcy court or the district court before the bankruptcy court’s deadline. Claimant is enjoined from litigation and must pursue his claims against the Trust established to resolve tort claims using assets that Debtor set aside during bankruptcy.
- Procedural context:
- Claimant launched a suit against Debtor and appealed adverse court decisions until the matter reached the U.S. Court of Appeals for the 7th Circuit. Debtor filed for chapter 11 bankruptcy, and the bankruptcy court confirmed Debtor’s plan of reorganization. Debtor requested that the U.S. Court of Appeals dismiss Claimant’s appeal related to the suit.
- Facts:
- Debtor underwent chapter 11 reorganization and had a plan confirmed in March 2025. Claimant sued Debtor for alleged torts and appealed adverse decisions until the matter reached the U.S. Court of Appeals for the 7th Circuit. After the bankruptcy court confirmed Debtor’s plan of reorganization, Debtor requested that the U.S. Court of Appeals dismiss Claimant’s appeal. Debtor’s confirmed plan established options for tort claimants seeking redress. Claimant did not respond to the service of papers establishing the options available. Claimant was assigned to the Trust funded by the bankruptcy estate because he did not decide on how to proceed with his claim. This assignment enjoined Claimant from pursuing litigation against Debtor. Claimant asserted that he did not receive any of the plan documents. Debtor responded that it sent copies of the documents to Claimant and that Claimant acknowledged receipt. The court inferred that Claimant may not have remembered or recognized the significance of the documents. The court mentioned that problems assuring service inside prisons may have affected Claimant. Claimant asserted that he cannot grasp complex subjects and requested legal aid. Because Claimant did not respond to Debtor’s plan or seek relief from the lower courts before the bankruptcy court's deadline, the Court of Appeals found that Claimant must pursue his claim against the Trust and dismissed his appeal.
- Judge(s):
- Easterbrook. St. Eve, and Lee
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