Browning v. MCI, Inc.

546 F.3d 211
CourtCourt of Appeals for the Second Circuit
DecidedOctober 14, 2008
DocketDocket 06-2079-bk
StatusPublished
Cited by2 cases

This text of 546 F.3d 211 (Browning v. MCI, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Browning v. MCI, Inc., 546 F.3d 211 (2d Cir. 2008).

Opinion

SOTOMAYOR, Circuit Judge:

Plaintiff-appellant Victor Browning appeals from an order of the United States District Court for the Southern District of New York (Stein, J.) affirming an order of the United States Bankruptcy Court for the Southern District of New York (Gonzalez, J.) granting the reorganized debtor-appellee MCI, Inc.’s motion to bar Browning from prosecuting Kansas state law claims for trespass and unjust enrichment against MCI, Inc. following its emergence from a Chapter 11 proceeding. We hold that, to the extent Browning’s claims are viable under Kansas state law, they are pre-petition claims that were discharged by confirmation of MCI, Inc.’s plan of reorganization.

BACKGROUND

In the late 1980s, a subsidiary of or predecessor to MCI, Inc. installed fiber-optic telecommunications cables along a railroad right of way that ran through land owned by Browning in Kansas. In 2001, Browning filed a putative class action in Kansas state court against predecessors in interest to MCI 1 on behalf of himself and similarly situated landowners, alleging that MCI was trespassing on his land and had been unjustly enriched by its unauthorized use of his property. Shortly thereafter, *214 MCI filed a voluntary petition for bankruptcy, and eventually obtained an order from the bankruptcy court enjoining Browning from further prosecuting his Kansas state law claims. Browning appealed that order to the district court, and, having lost there, now appeals to us.

A. Browning’s Putative Class Action

Browning’s putative class action complaint contended that MCI was trespassing on the plaintiffs’ land and had been unjustly enriched by that unlawful use. More specifically, the complaint framed, as an issue common to the purported class, “[wjhether MCI has and continues to intentionally and unlawfully trespass on the property owned by plaintiff and members of the Class by installing, maintaining and operating fiber optic cable on the property without authority.” Browning further contended that MCI would be unjustly enriched if it were permitted to retain the entirety of its past or future profits from the use or sale of the fiber optic cable.

MCI removed the case to the United States District Court for the District of Kansas, which in turn transferred the action to the United States District Court for the Northern District of Oklahoma, where a similar case filed by other landowners was pending. Soon thereafter, MCI filed in the United States Bankruptcy Court for the Southern District of New York a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code, 11 U.S.C. § 101 et seq. Upon learning of the petition, the Oklahoma federal district court administratively closed Browning’s case. Browning did not file a proof of claim in the bankruptcy proceeding, although it had notice of the proceeding and an opportunity to file a proof of claim. MCI’s plan of reorganization was confirmed by the bankruptcy court in October 2003, and became effective in April 2004.

After confirmation of MCI’s plan of reorganization, Browning moved the Oklahoma federal court to reopen his case. MCI responded by moving the bankruptcy court to bar Browning from further prosecuting his claims against MCI on the ground that they had been discharged by the confirmation of the plan. In opposition, Browning argued that his claims were not discharged because they arose from actions that continued after confirmation of the plan.

B. Bankruptcy Court Decision

The bankruptcy court granted MCI’s motion to bar Browning from further prosecuting his claims against MCI. In re WorldCom, Inc., 320 B.R. 772, 784 (Bankr. S.D.N.Y.2005). In reaching this decision, the bankruptcy court observed that Browning’s continuing trespass claim was not based on the intrusion of the fiber optic cables themselves, but was based instead on the theory that each light pulse sent through the cables constituted a new trespass on his property. Id. at 777. Accordingly, the bankruptcy court did not decide whether the cable constituted a permanent or continuing trespass to Browning’s land. Id. at 776 n. 4.

With respect to whether the light pulses could give rise to an action for trespass, the bankruptcy court first noted that the “traditional” view of trespass law extended only to tangible invasions and relegated intangible invasions to nuisance law. Id. at 776. It further noted that some states have adopted a more relaxed “modern” view, under which certain intangible invasions were cognizable as trespasses. Id. But, the bankruptcy court observed, those states require the plaintiff to establish that the intangible invasion caused damages to land, whereas damages are presumed in *215 the case of a tangible trespass. Id. at 776-77. After surveying the laws of various other states and two relevant decisions of the United States District Court for the District of Kansas, the bankruptcy court predicted that Kansas law would recognize intangible trespass claims in cases in which the plaintiff could establish that the invasion had caused damage to the res. Id. at 779-82 (discussing City of Shawnee v. AT & T Corp., 910 F.Supp. 1546 (D.Kan.1995) and Maddy v. Vulcan Materials Co., 737 F.Supp. 1528 (D.Kan.1990)). The court then concluded that Browning’s allegations regarding the light pulses did not state a claim for trespass under Kansas law because he did not allege that the intangible light pulses had caused any damage to his land. Id. at 782.

C. District Court Decision

Browning timely appealed the bankruptcy court’s decision to the district court, pursuant to 28 U.S.C. § 158(a). On appeal, Browning argued, inter alia, that: (1) the bankruptcy court improperly applied Kansas trespass law; (2) the bankruptcy court misconstrued the factual and legal bases for the alleged trespass; (3) the bankruptcy court’s application of Kansas trespass law conflicted with Kansas public policy; and (4) the bankruptcy court failed to address Browning’s unjust enrichment claim. In opposition, MCI argued, inter alia, that all of Browning’s claims had been extinguished by the confirmation of the Plan and, in any event, the bankruptcy judge properly determined that Browning could not maintain an action for a continuing trespass.

The district court affirmed the decision of the bankruptcy court. In re WorldCom, Inc., 339 B.R. 836, 845 (S.D.N.Y.2006). Noting that “the precise configuration of appellants’ claims ... is unclear,” the district court analyzed Browning’s trespass claims with respect both to the fiber optic cables and to the light pulses coursing through them. Id. at 841. The court concluded that neither the cables nor the light pulses would give rise to a valid post-confirmation claim of trespass under Kansas law, and that any valid pre-petition claim had been discharged by confirmation of MCI’s plan of reorganization. Id.

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546 F.3d 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/browning-v-mci-inc-ca2-2008.