Meadows v. AMR Corp. (In the Matter of AMR Corp.)

No. 15-3655-BK, Summary Order
Second Circuit affirmed the lower courts' decisions that disallowed and expunged certain amended proofs of claims as untimely. The court affirmed the lower courts' findings that the delay in pursuing the claims were unjustified and allowing the amended claims would open the floodgates were not an abuse of discretion. The court overruled the creditor's argument that the delay in filing the amendments was due to his prior counsel, holding that mistakes of counsel do not constitute excusable neglect. Lastly, the Second Circuit also found that the creditors' procedural challenges were without merit.
Procedural context:
Appeal from the district court's decision affirming the bankruptcy court's decision to disallow as untimely, three amended proofs of claim.
A former pilot of the Debtors filed 3 amendments to his original proof of claim. The bankruptcy court found that the amended claims were not timely and did not satisfy the relation-back requirements, as they asserted statutory claims well beyond the original claim for long-term disability benefits and asserted an amount over ten times the original claim. The bankruptcy court also held that the amended claims should not be permitted based on excusable neglect. The creditor appealed, arguing that the Bankruptcy Court erred in holding that the amended claims did not relate back to his original claim. The district court affirmed the bankruptcy court's decision.
Leval, Sack and Raggi

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