FAILURE TO FILE TIMELY CLAIMS IN BANKRUPTCY BARRED SEAMANS CLAIMS
In re U.S. LINES, INC., ASBESTOSIS CLAIMANTS, Appellant, -against - U.S. LINES REORGANIZATION TRUST, U.S. LINES, INC., Appellee.
00 Civ. 3800 (RWS)
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
2001 U.S. Dist. LEXIS 6612
May 17, 2001, Decided
May 21, 2001, Filed
PROCEDURAL POSTURE: Appellant legal clinic challenged order of United States Bankruptcy Court, which had granted the motion of appellees vessel owner and its reorganization trust to expunge 23,963 claims of seamen exposed to asbestos that had been filed by appellant in the bankruptcy proceeding. Appellant also moved for permission to file a master complaint.
OVERVIEW: The bankruptcy court had expunged the seaman claims after appellant failed to meet the 30-day timeframe set forth in the bankruptcy court's order. The reviewing court affirmed the bankruptcy court's order denying appellant's request for modifications and extensions because the bankruptcy court's factual findings were not clearly erroneous and equitable estoppel was not warranted for appellant's failure to timely file the claims. Moreover, the bankruptcy court had authority to apply a statute of limitations in disallowing claims, including the seaman's personal injury claims, and it lacked authority to extend the 30-day time limit set forth in 11 U.S.C.S. § 108(c)(2). The bankruptcy court properly barred redundant claims given that those claims had been disallowed and could not have been revived under the applicable statutes of limitations. Appellant was not entitled to file a master complaint under Fed. R. Bankr. P. 8013 given it's past history of failing to file documentation to support seaman claims. In addition, Fed. R. Civ. P. 8 and Fed. R. Civ. P. 11 required appellant to act more diligently than the proposed master complaint would have allowed.
OUTCOME: Order was affirmed and appellant's motion to file a master complaint was denied.
