Eagle-Picher Industries, Inc. v. Caradon Doors & Windows, Inc. (In Re Eagle-Picher Industries, Inc.)

278 B.R. 437, 2002 Bankr. LEXIS 570, 2002 WL 1049447
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedMay 9, 2002
Docket91-00100
StatusPublished
Cited by3 cases

This text of 278 B.R. 437 (Eagle-Picher Industries, Inc. v. Caradon Doors & Windows, Inc. (In Re Eagle-Picher Industries, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eagle-Picher Industries, Inc. v. Caradon Doors & Windows, Inc. (In Re Eagle-Picher Industries, Inc.), 278 B.R. 437, 2002 Bankr. LEXIS 570, 2002 WL 1049447 (Ohio 2002).

Opinion

*440 DECISION AFTER REMAND

BURTON PERLMAN, Bankruptcy Judge.

For background to this Decision, we quote from our prior Decision and Order on Debtors’ Motion for Summary Judgment filed April 5, 2001:

For orientation we begin this decision by repeating the opening paragraph of our original decision, that entered December 24,1997, in this matter:
Reorganized debtor Eagle-Picher Industries, Inc. (“EPI”) has filed a Motion for Order Enforcing the Plan and the Confirmation Order to Stay Actions of Caradon Doors and Windows, Inc. (the “Motion”). Caradon was held liable for patent infringement in a suit by Therma-Tru Corporation. The subject of the patent in question was fiberglass skins. Such fiberglass skins had been sold by EPI’s predecessor. (That predecessor was the pre-confirmation debtor Eagle-Picher Industries, Inc. in the captioned bankruptcy case. Hereafter, the term “debtor” will be used to refer to that entity.) Caradon has now filed suit against EPI in a Georgia U.S. District Court (the “Georgia suit”) seeking damages on a number of theories. Caradon states that it limits its claim for damages to post-petition (i.e., post-January 7, 1991) damages.
In our prior decision, this court granted the motion of EPI. We did so on alternative bases: (1) that Caradon had abandoned its claim, and (2) that Cara-don was an “unknown” creditor, that therefore notice by publication was sufficient for Caradon to be bound by the order of confirmation entered in the consolidated Chapter 11 bankruptcy cases captioned above, and therefore the suit filed by Caradon against EPI in a Georgia U.S. District Court violated the Plan and confirmation order entered in these consolidated cases, as well as 11 U.S.C. § 524(a) and § 1141(a), (c), and (d)(1)(A). Caradon then appealed from the decision of this court to the U.S. District Court. The District Court reversed this court in its conclusion as to abandonment, but remanded the case for further findings as to whether Cara-don was a “known” or “unknown” creditor.
‡ ^ ‡ $
Following the remand, this court convened a status conference on July 27, 1999 for the purpose of scheduling discovery regarding the issue identified by the District Court. In the course of discovery, EPI came upon evidence which it asserted showed that Caradon had actual knowledge of the confirmation hearing prior to that event, and contended that if that were true, a determination of the “known”/“unknown” issue would be mooted. EPI moved to limit discovery to that issue, and that motion was granted. Subsequently, at the request of Caradon, discovery was broadened to include the issues of whether Caradon’s claims in the Georgia Action were pre-petition or post-petition, and, if post-petition, whether such claims were administrative in nature.

We add to the foregoing that in its remand the District Court said, in the event that it was found that Caradon’s claims arose post-petition, that this court “may be required to determine whether the claims relate to administrative expenses and, if so, whether they are dis-chargeable.”

In addition, the foregoing statements require emendation in one respect in view of uncontested facts appearing in the Joint Pretrial Statement filed by the parties. *441 Where we earlier stated that the subject of the Therma-Tru patent was fiberglass skins, the parties now state that that patent is for “Comprehensive Molded Door Assembly.” Eagle-Picher did not manufacture door assemblies.

As we have indicated, the foregoing quotation was contained in our decision of the motion of EPI for summary judgment. We denied that motion, holding that there was an issue of fact as to whether Caradon knew of the date of the confirmation of debtors’ plan before confirmation occurred. We commented further that there was a question as to “whether any knowledge of Caradon of the confirmation hearing, if knowledge was obtained, was obtained sufficiently in advance of the confirmation hearing that it might be regarded as reasonable.”

An evidentiary hearing following remand was held September 24, 2001. The bulk of the hearing was devoted to the issue of whether debtor had mailed notice of the confirmation hearing to Caradon before the confirmation hearing. Also dealt with was the issue of allowability of Caradoris claim as an administrative expense, as well as the known/unknown issue.

Counsel in this matter have been extremely helpful to the court, for they filed a Joint Pretrial Statement (Document 6610) which contains a very extensive delineation of contested and uncontested facts. The court adopts as findings of fact all of the recitations of fact marked “Uncontested” in that document and incorporate those recitations by reference into this Decision. The most pertinent of those findings of fact will be quoted directly in the course of this Decision. Where this occurs, reference to the Joint Pretrial Statement will preface the quotations. Additional findings of fact and conclusions of law will appear in the discussion which follows.

1. Notice

Peachtree Doors, Inc. (“Peachtree”) was the predecessor of Caradon and it is understood by the parties that if notice was given to Peachtree, that is effective against Caradon. We deal first with the issue of whether Eagle-Picher 1 mailed notice of the confirmation hearing to Caradon.

H* H* ❖ & H?
FROM THE JOINT PRETRIAL STATEMENT
40. Uncontested. In March, 1991, Eagle-Picher filed a motion with the bankruptcy court to be authorized to provide noticing services required by Bankruptcy Rule 2002 and to be the bankruptcy court’s “agent” to maintain the claims registry provided for in Bankruptcy Rule 5003(b). The court entered such an order on March 18, 1991. Pursuant to Eagle-Picher’s motion filed December 11, 1996, the bankruptcy court, by order filed February 7, 1997, relieved Eagle-Picher of its duties as the court’s agent in connection with docketing of claims and maintenance of the claims register, nunc pro tunc to January 31, 1997.
41. Uncontested. By its July 23, 1996 order, the bankruptcy court approved Eagle-Picher’s Solicitation and tabulation procedures.
42. Uncontested. By Order entered August 28, 1996, the bankruptcy court approved Eagle-Picher’s Joint Disclo *442 sure Statement (the “Disclosure Statement”) and scheduled a hearing on November 13, 1996 to consider confirmation of Eagle-Picher’s Third Amended Consolidated Plan of Reorganization included in the Disclosure Statement.
43. Uncontested. After entry of the August 28, 1996 order, Eagle-Picher initiated the process of mailing Solicitation Packages to voting and non-voting creditors.
44. Uncontested.

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Bluebook (online)
278 B.R. 437, 2002 Bankr. LEXIS 570, 2002 WL 1049447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eagle-picher-industries-inc-v-caradon-doors-windows-inc-in-re-ohsb-2002.