Hamilton v. Dalkon Shield Trust (In re A.H. Robins Co.)

197 B.R. 505, 1995 Bankr. LEXIS 2072
CourtDistrict Court, E.D. Virginia
DecidedSeptember 5, 1995
DocketNo. 85-01307-R
StatusPublished
Cited by2 cases

This text of 197 B.R. 505 (Hamilton v. Dalkon Shield Trust (In re A.H. Robins Co.)) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Dalkon Shield Trust (In re A.H. Robins Co.), 197 B.R. 505, 1995 Bankr. LEXIS 2072 (E.D. Va. 1995).

Opinion

MEMORANDUM

MERHIGE, District Judge and BLACKWELL N. SHELLEY, Bankruptcy Judge.

This matter is before the Court on a Motion by Daikon Shield Claimant Joe L. Hamilton (“Hamilton”) asking the Court to order the Daikon Shield Claimants Ti’ust (“Trust”) to reinstate his disallowed claim. (DS-122304). Hamilton’s claim was disallowed by the Trust for failing to return completed claim materials to the Trust by its August 1, 1994 deadline. His prayer for relief rests on the argument that he was unaware of the deadline, having never received actual notice of it. He moves that he should therefore be excused from failing to meet the deadline and have his claim reinstated. For the reasons which follow, the motion will be denied.

I.

In February, 1994, the Trust announced a final deadline of August 1,1994, for claimants to submit all necessary claim materials to the Trust. This deadline was established in an effort to expedite the processing of claims that had been stalled in the Claims Resolution Facility (the “CRF”) system for years. These claims were stalled because numerous claimants had failed to submit all of the necessary forms and medical information required for processing.1 Pursuant to the Trust’s policy set in February, 1994, of disallowing all claimants who failed to correct the deficiencies in their claim materials before the announced August 1, 1994 deadline, the Trust sent a total of four letters to each [507]*507claimant warning each of the deadline and its ramifications.2

II.

Hamilton and his wife, Gladys Hamilton, each had filed a proof of claim with the Court on February 3, 1986. Both were filed by their attorney, Gorman H. King (“King”). King filed separate, completed questionnaires for each of the Hamiltons. In March, 1990, the Trust sent King two sets of complete Claim Packets containing all of the necessary forms to pursue the Hamiltons’ claims.3 Option election forms were eventually received from the Hamiltons on June 21, 1991. Both elected to proceed through Option 3. No medical records or claims forms had been submitted by that time.

On February 9, 1994, Hamilton’s wife wrote to the Trust expressing her intention to dismiss King as her attorney. This letter did not make any reference to Hamilton’s claim and made no mention of releasing King as his attorney. In fact, the letter simply stated,

“I, Gladys Hamilton, request that my attorney, Mr. Gorman H. King be dismissed from proceeding with my case immediately. I choose to proceed with my ease myself.”

No medical records from either of the Hamiltons had been received by the Trust. On February 17, 1994, the Trust wrote King informing him of Mrs. Hamilton’s request and explaining that he would be removed from the records of the Trust as her counsel fifteen days from date of the letter. The Trust subsequently advised Mrs. Hamilton that it had removed King as her attorney in their records.

On March 15 and May 2, 1994, the Trust sent Mrs. Hamilton the first two of the four letters warning of the August 1, 1995 deadline. Acting on her instructions to release King as her attorney of record, the Trust sent these letters directly to the address referred to in her letter, supra. In response to these first two warnings, Mrs. Hamilton sent an Option 3 claim book and medical records to the Trust. These documents were received on May 16,1994.

In the meantime, the Trust also sent all four warning letters to Mr. Hamilton. Having received no notification of Mr. Hamilton’s desire to release King as his attorney, the Trust sent all of this correspondence to Hamilton’s attorney, King, at King’s address. Hamilton alleges that these letters were never forwarded to him. By the time the August 1, 1994, deadline arrived, the Trust had yet to receive any medical records from Hamilton.

On October 28, 1994, the Trust made a settlement offer to Mrs. Hamilton. Realizing this offer did not include payment for his own claim, Hamilton called the Trust to inquire about his status. The Trust informed Hamilton that his claim had been disallowed for failing to present his claim materials by the August 1, 1994 deadline. On November 22, 1994, Hamilton wrote to the Trust requesting that his claim be reinstated. He also requested that King be removed as his authorized agent on his Trust claim. On January 11, 1995, the Trust wrote back to Mr. Hamilton, informing him that his reasons for missing the deadline were not excusable, and, therefore, the Trust would not reinstate his disallowed claim.

Mrs. Hamilton’s ADR hearing was subsequently conducted and she was given an award on July 13, 1995. Six days later, on July 19, 1995, Mr. Hamilton wrote to this [508]*508Court with the present Motion. Hamilton essentially asks for this Court to order the Trust to excuse his failure to meet the August 1, 1994, deadline and to reinstate his disallowed claim. First, Hamilton alleges that he did not know it was necessary for both he and his wife to write a letter to the Trust dismissing King. Second, Hamilton alleges that because of King’s failure to forward the warning letters, he had never received notice of their contents.

III.

This Court has the exclusive jurisdiction to interpret the relevant instruments and address these matters. See Debtor’s Sixth Amended and Restated Plan of Reorganization § 8.05, March 28, 1988, confirmed by In re A.H. Robins Co., 88 B.R. 742 (E.D.Va.1988), aff'd 880 F.2d 694 (4th Cir.1989), cert. denied 493 U.S. 959, 110 S.Ct. 376, 107 L.Ed.2d 362 (1989); see also In re A.H. Robins Co., Inc., 972 F.2d 77 n. 1 (4th Cir.1992) (affirming the Court’s exclusive jurisdiction).

As already noted, this Court retains jurisdiction over the Trust for many purposes. This power, however, is somewhat limited. Section 8.05 of the Plan specifically states that “nothing contained in this Section 8.05 is intended to confer jurisdiction upon the Court over, or grant authority to monitor, the day-to-day operations of the Trusts or the Claims Resolution Facility.” Debtor’s Sixth Amended and Restated Plan of Reorganization § 8.05. Accordingly, before this Court can provide any relief from the Trust’s decision to disallow Hamilton’s claim, Hamilton “must show facts or issues that elevate the matter above the level of ordinary operations.” Mantush v. Dalkon Shield Claimant’s Trust, 197 B.R. 493, 494 (E.D.Va.1994).

In In re A.H. Robins (Almalich v. Dalkon Shield Claimants Trust), 197 B.R. 485 (E.D.Va.1994), this Court addressed certain claimants’ attempt to obtain relief from having to meet the August 1, 1994 deadline. The Court held that the, “establishment of the August 1, 1994, deadline is within the Trust’s authority and constitutes an ordinary, day-to-day operation in the management of the claims process.” (Emphasis added) Id. at 487. The Court then refused to grant relief from the Trust’s discretionary decision.

The only question in this case, therefore, is whether Hamilton has shown facts which elevate the Trust’s decision to disallow his claim “above the level of ordinary operations.” Hamilton bases his request for relief on the ground that he “never did receive notice about the deadline date for his claims.” This Court holds, however, that the Trust satisfied its duty of notifying Mr. Hamilton.

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Related

In re A.H. Robins Co.
215 B.R. 112 (E.D. Virginia, 1997)

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Bluebook (online)
197 B.R. 505, 1995 Bankr. LEXIS 2072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-dalkon-shield-trust-in-re-ah-robins-co-vaed-1995.