In re City of Detroit

576 B.R. 552
CourtUnited States Bankruptcy Court, E.D. Michigan
DecidedOctober 20, 2017
DocketCase No. 13-53846
StatusPublished
Cited by2 cases

This text of 576 B.R. 552 (In re City of Detroit) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re City of Detroit, 576 B.R. 552 (Mich. 2017).

Opinion

OPINION REGARDING MOTION BY JEROME COLLINS FOR LEAVE TO FILE DELAYED CLAIM

Thomas J. Tucker, United States Bankruptcy Judge .

1. Introduction

This case is before the Court on a motion filed by Jerome Collins (“Collins”), entitled “[Corrected] Motion for Entry of Order Granting Collins’ Verified Motion for Leave to File Delayed Proof of Claim”) (Docket # 11743, the “Motion”). The City of Detroit filed an objection to the Motion,1 and Collins filed a reply brief in support of the Motion.2 The Court held a hearing on the Motion on March 22, 2017. At the conclusion of the hearing, the Court took the Motion under advisement.

For the reasons stated in this opinion, Collins’s Motion will be denied.

II. Background

A. The relief sought by Collins’s Motion

In the Motion, which was filed December 30, 2016, Collins seeks, in substance, leave to file a proof of claim at a time that is now more than three years after the February 21, 2014 deadline for filing such a proof of claim in this bankruptcy case. More specifically, Collins now seeks to file a proof of claim related to his efforts to obtain a lift of his suspension, and • later termination, as a police officer employed by the City, plus back pay and other monetary relief.

B. Pre-petition and post-petition efforts to obtain relief for and by Collins

Long before Collins filed the present Motion, Collins and his union, the Detroit Police Officers Association (“DPOA”), each sought relief for Collins’s suspension and termination, in two ways, both of which were unsuccessful. The first of these ways was by the DPOA’s filing of two grievances, well before the City filed its bankruptcy case. The second of these ways was by Collins filing his own lawsuit in the United States District Court, against the City and others. That lawsuit was filed long after the City filed its bankruptcy case and the claims Bar Date had passed.

I. The DPOA’s two grievances, and its related proof of claim

First, the DPOA filed two grievances on Collins’s behalf, before the City filed its Chapter 9 bankruptcy petition on July 18, 2013. These were grievance nos, 10-005 and 12-0137. The more recently-filed of these grievances, no. 12-0137, was appealed to binding arbitration under the applicable collective bargaining agreement, from disciplinary charges brought by the City against Collins that led to Collins’s termination. That grievance was heard in an arbitration hearing held on December II, 2013. In a 21-page “Opinion and Award” issued February 7, 2014, the arbitrator upheld the Trial Board’s findings of guilt and the City’s decision to terminate Collins. The arbitrator found that there was just cause for the termination, and affirmed the termination.3

On November 21, 2013, roughly a month before the Collins arbitration hearing was held, this Court entered an order in this case, known as the “Bar Date Order,” which set a deadline of February 21, 2014. for the filing of proofs of claim in this bankruptcy case.4 The Bar Date Order permitted the DPOA to file a proof of claim on behalf of its members related to any grievances. The Order also permitted individual union members, such as Collins, to file their own proof of claim. The Bar Date Order stated:

Each of the Public Safety Unions may file one or more omnibus proofs of claim by the General Bar Date for its members with respect to (a) claims related to grievances for its respective members and/or (b) defense and indemnification claims arising from tort claims asserted or that may be asserted by third parties against the City and/or such Public Safety Union member(s), subject to the City’s right to object to any such claims. The filing of any such omnibus proof of claim is without prejudice to the right of any Public Safety Union member to file a claim on his or her own behalf.5

The DPOA timely filed such a proof of claim, on February 20, 2014, on behalf of a large number of its members. The proof of claim stated that it was for “[cjlaims arising from discipline matters relative to DPOA members—-see attached list.” The attached list included the Collins grievance no. 12-0137, and listed the status of that grievance as “pending arbitration,”6

Collins was permitted to file his own proof of claim, not only regarding his pending grievances, but also regarding any other pre-petition claim(s) he wished to assert against the City. The Bar Date Order required Collins, like the other creditors in the City’s bankruptcy case, to file any proof of claim by February 21, 2014. But to this day, Collins never has filed a proof of claim.

Although the DPOA’s proof of claim listed Collins’s grievance no. 12-0137 as “pending arbitration” when it filed its proof of claim on February 20, 2014, that grievance in fact had been decided adversely to the DPOA and Collins, by the February 7, 2014 written arbitration Opinion and Award described above. As the DPOA later acknowledged, at least two times in writing, the binding arbitration decision concluded grievance no. 12-0137, adversely to Collins and the DPOA. In a letter dated August 22, 2016, addressed to the City’s law department, counsel for the DPOA stated the following:

This is written to confirm that the Detroit Police Officers Association acknowledges that the disciplinary matter involving former Officer Jerome Collins was part of bankruptcy claim No. 1877 which was filed by the Association in order to preserve his rights under the disciplinary process in accordance with the provisions of the collective bargaining agreement and city employment terms between the City and the Association. A disciplinary hearing toók place discharging him from the City, The City’s discharge decision was appealed to arbitration wherein the discharge was upheld in a final and binding decision rendered by an impartial arbitrator under the provisions of the collective bargaining agreement and city employment terms. As a result of the arbitrator’s decision the claim filed by the Association on behalf of Officer Jerome Collins is deemed closed.7

Soon after the DPOA counsel’s letter to the City quoted above, the DPOA wrote a letter to Collins, dated September 29, 2016, in which the DPOA recognized that grievance no. 12-0137 had concluded adversely to Collins, and had upheld his termination. The letter also said that the result in that grievance concluded, or “closed,” the earlier grievance, no. 10-005.8

Thus, as .the DPOA has recognized and acknowledged in writing, the two grievances filed on behalf of Collins, nos, 10-005 and 12-0137, concluded adversely to Collins, and his termination from employment as a police officer for the City was upheld. As the DPOA letters also acknowledge, the claim that the DPOA timely filed on behalf of Collins on February 20, 2014, one day before the Bar Date, which was limited to grievance no. 12-0137, is concluded, and the City has completely prevailed on that claim.9

2.

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Bluebook (online)
576 B.R. 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-city-of-detroit-mieb-2017.