In Re Claim of Bettina Depippo v. Kmart Corp.

335 B.R. 290, 2005 U.S. Dist. LEXIS 29670, 2005 WL 3158008
CourtDistrict Court, S.D. New York
DecidedNovember 14, 2005
Docket04 Civ. 7839(WCC)
StatusPublished
Cited by26 cases

This text of 335 B.R. 290 (In Re Claim of Bettina Depippo v. Kmart Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Claim of Bettina Depippo v. Kmart Corp., 335 B.R. 290, 2005 U.S. Dist. LEXIS 29670, 2005 WL 3158008 (S.D.N.Y. 2005).

Opinion

OPINION AND ORDER

WILLIAM C. CONNER, Senior District Judge.

Plaintiff Bettina DePippo commenced this action against Kmart Corporation and Kmart of N.Y. Holdings, Inc. (collectively, “Kmart”), and Michael Morrone (collectively, the “defendants”) alleging that defendants’ policies and practices resulted in a violation of plaintiffs constitutional rights by denying her the right to contract to buy goods, services and personal property solely because of her race. Specifically, plaintiff alleges that: (1) defendants’ actions deprived her of her right to make and enforce contracts in violation of 42 U.S.C. § 1981; (2) defendants’ actions were motivated primarily by intentional racial discrimination in violation of 42 U.S.C. § 1981; (3) defendants’ actions constituted malicious prosecution and intentional infliction of emotional distress; and *293 (4) Kmart was negligent in its hiring, recruiting, training, retaining and supervising of Morrone. In the present motion, defendants move for summary judgment arguing that plaintiffs claims are barred by: (1) discharge in bankruptcy; (2) res judicata; (3) collateral estoppel; and (4) lack of subject matter and personal jurisdiction because plaintiff failed to file an administrative expense claim with the United States Bankruptcy Court for the Northern District of Illinois (the “Bankruptcy Court”) on or before June 20, 2003, the deadline for filing claims against Kmart (the “Bar Date”) as set by Kmart’s bankruptcy reorganization plan. 1 For the reasons stated hereinafter, defendants’ motion for summary judgment is granted in part and denied in part.

BACKGROUND

On December 22, 2002, plaintiff, an African-American woman, was shopping at the Big Kmart Store (the “Store”), 2 located at 399 Tarrytown Road, Greenburgh, New York, when she was stopped by Morrone, the loss prevention manager at the Store, who accused her of shoplifting. (PI. Mem. Opp. Summ. J. at 1.) Morrone told plaintiff that he observed her shoplifting via a video surveillance camera. (Compita 54.) Plaintiff denied any wrong-doing, but Mor-rone brought her to the store’s security office and called the police. (PI. Mem. Opp. Summ. J. at 1.) Plaintiff was confined in a small room for approximately one hour, during which time she alleges Mor-rone “verbally harassed and berated” her and “accused her of defrauding Kmart” despite her pleas of innocence. (Complt. ¶¶ 10, 11.) Furthermore, plaintiff alleges that defendants refused her request to view the surveillance tape purporting to show her criminal activity. (Id. ¶ 12.) Plaintiff was arrested and charged with petit larceny. (Id. ¶¶ 13,16.)

Plaintiffs criminal trial was pending for one year. After three adjournments on February 25, 2003, April 4, 2003 and June 17, 2003, plaintiff had a bench trial on September 5, 2003. (PI. Mem. Opp. Summ. J. at 1.) The presiding judge reserved decision following the trial and, on October 3, 2003, found plaintiff not guilty. (Complt.f 20.) The sole evidence against plaintiff in the criminal trial was the uncorroborated testimony of Morrone, leading to plaintiffs claim that defendants procured her prosecution for petit larceny after her arrest. (Id. ¶ 16.) The surveillance camera videotape was not produced during discovery or trial; defendants represent that the surveillance tape was destroyed. (Id. ¶¶ 21, 22, 23.)

As a result of the above-described incident, on October 1, 2004, plaintiff filed a Complaint in the United States District Court for the Southern District of New York, alleging five distinct causes of action: (1) violation of 42 U.S.C. § 1981; (2) malicious prosecution; (3) intentional infliction of emotional distress; (4) negligence; and (5) violation of 42 U.S.C. § 1982. (PI. Mem. Opp. Summ. J. at 2.) She alleges that she “was forced to disrupt her education to attend her criminal trial” and “was required to disclose the charges and pending trial to her work and school associates.” (Id. ¶¶ 17,18,19.)

However, two years earlier, on January 22, 2002, Kmart and certain of its subsidiaries and affiliates each had filed a volun *294 tary petition in the Bankruptcy Court for relief under Chapter 11 of Title XI of the United States Code, 11 U.S.C. § 101, et seq., as amended. (Defs. Rule 56.1 Stmt. ¶ 3.) On April 23, 2003, the Bankruptcy Court entered its Findings of Fact, Conclusions of Law and the Confirmation Order under 11 U.S.C. § 1129(a), (b) and Fed. R. BaNKR. P. 3020, confirming Kmart’s Reorganization Plan, which set a June 20, 2003 deadline for creditors to file post-petition administrative claims against Kmart. (Id. ¶¶ 5, 6.) The effective date of the Reorganization Plan was May 6, 2003. (Defs. Mem. Supp. Summ. J. at 2.) Furthermore, pursuant to the Bankruptcy Court’s Confirmation Order, “Kmart caused Notice of the Confirmation Order, Effective Date and Bar Date to be published in the May 12, 2003 issues of the New York Times, the Wall Street Journal and USA Today.” (Id. ¶ 7.)

The order specifically provides that: “[a]ny Administrative Claim that is not timely filed and served will be disallowed automatically without the need for any objection from the Debtors.” (Defs. Mem. Supp. Summ. J. at 2 (quoting Confirmation Order ¶ 25, § 10.4).) The Confirmation Order explicitly discharged “all claims and interests arising from incidents occurring prior to the Confirmation Date of May 6, 2003.” (Defs. Mem. Supp. Summ. J. at 3 (citing Confirmation Order ¶ 11; Reorganization Plan § 12.2).) Moreover, pursuant to its Confirmation Order, the Bankruptcy Court issued “a permanent injunction as to any and all claims for incidents occurring prior to May 6, 2003.” (Defs. Mem. Supp. Summ. J. at 3 (citing Confirmation Order ¶ 12; Reorganization Plan § 12.11).)

Defendants maintain that plaintiff failed to file an administrative expense claim pri- or to the June 20, 2003 deadline and that, to date, she has neither filed a claim with the Bankruptcy Court, nor sought leave to do so. (Defs. Rule 56.1 Stmt. ¶ 8.) Consequently, defendants contend that plaintiffs claims are barred and therefore should be dismissed. Specifically, defendants assert dismissal is required because: (1) her claims were discharged by the Bankruptcy Court; (2) plaintiffs action and each individual claim are barred by the doctrine of res judicata and collateral estoppel; (3) this Court lacks subject matter and personal jurisdiction as a result of the permanent injunction provisions of the Bankruptcy Court’s Confirmation Order; and (4) plaintiffs claim of intentional infliction of emotional distress is barred by the statute of limitations. (Defs. Mem. Supp. Summ. J.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ditech Holding Corporation
S.D. New York, 2021
Witkop v. McCarthy
N.D. New York, 2021
In re Temsco NC Inc.
537 B.R. 108 (D. Puerto Rico, 2015)
In re Maguire Group Holdings, Inc.
508 B.R. 504 (S.D. Florida, 2014)
Unaatuq, LLC v. Green (In re Catholic Bishop)
509 B.R. 229 (D. Alaska, 2014)
Jones v. PILGRIM'S PRIDE, INC.
741 F. Supp. 2d 1272 (N.D. Alabama, 2010)
In Re St. James Mechanical, Inc.
434 B.R. 54 (E.D. New York, 2010)
Perez v. Safety-Kleen System, Inc.
253 F.R.D. 508 (N.D. California, 2008)
In Re Milovanovic
357 B.R. 250 (S.D. New York, 2006)
In Re Pameco Corp.
356 B.R. 327 (S.D. New York, 2006)
Buchwald Capital Advisors LLC v. Metl-Span I., Ltd.
356 B.R. 327 (S.D. New York, 2006)
Wachtel v. Rich (In Re Rich)
353 B.R. 796 (S.D. New York, 2006)
Bruce Supply Corp. v. Kofsky (In Re Kofsky)
351 B.R. 123 (S.D. New York, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
335 B.R. 290, 2005 U.S. Dist. LEXIS 29670, 2005 WL 3158008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-claim-of-bettina-depippo-v-kmart-corp-nysd-2005.