In re J.S. II, L.L.C.

389 B.R. 563
United States Bankruptcy Court, N.D. Illinois·Decided April 16, 2008·No. No. 07-3856·Published·Cited by 5 cases

Opinion

[565]*565 MEMORANDUM OPINION ON DEBTORS’ OBJECTION TO CLAIM OF KATHY ANTUNOVICH

JACQUELINE P. COX, Bankruptcy Judge.

This matter concerns the Objection of the Debtors, J.S. II, L.L.C., River Village I, L.L.C., River Village West, L.L.C., and KND Investments, LLC (collectively, the “Debtors”) to the claims of Kathy Antunovich (“Antunovich”), Claim No. 24-2 in the amount of $72,500.00, Claim No. 87 in the amount of $1,044,063.91, and Antunovich’s Motion for Leave to Amend Claim No. 24-2 as Claim No. 24-3 in the amount of $145,000.00. The Debtors seek to disallow the claims, to expunge Antunovich’s claims, and ask that the motion to amend be denied.

I. Jurisdiction

The Court has jurisdiction to entertain this matter pursuant to 28 U.S.C. § 1334 and Internal Operating Procedure 15(a) of the United States District Court for the Northern District of Illinois. This matter is a core proceeding under 28 U.S.C. §§ 157(b)(2)(A),(B) and (O).

II. Background

In March 2006, Antunovich purchased a home at 1300 West 33rd Place, Chicago, Illinois, located in Bridgeport Village, a real estate venture developed by the Debtors. Antunovich purchased this property from a third-party, the original purchaser of the property, not the Debtors. On March 5, 2007, the Debtors filed petitions for relief under chapter 11 of the Bankruptcy Code. As the case progressed, June 5, 2007 was fixed as the claims bar date for non-governmental creditors and interest holders to file their claims. Acting pro se, on May 5, 2007, Antunovich timely filed a claim, Claim No. 24, asserting an unsecured priority claim in the amount of $40,000.00 against the Debtors for “[hjouse repairs required (building code violations)” for her home and referenced enclosures submitted with the claim. The enclosures consisted of several items of correspondence, including a letter between Antuno-vich and John Kinsella (“Kinsella”), a managing partner for the Debtors, regarding an alleged roof leak on Antunovich’s home. Also attached to the claim are various third-party letters, the first of which is a letter dated March 6, 2006 from Kinsella to Corine O’Hara, Antunovich’s attorney for the purchase of her home. The letter stated in pertinent part that “Bridgeport Village is responsible for fixing any City of Chicago code violations at 1300 West 33rd Place.” Also included are letters from Brickcraft, Inc., a sub-contractor for the Bridgeport Project; one to one of the Debtors, River Village LLC, and another to Bank of America, a lender to the Bridgeport Village Project. Both Brick-craft letters reference alleged structural deficiencies. On June 1, 2007, Antunovich filed a timely amendment to her claim, docketed as Claim No. 24-2, asserting an unsecured priority claim for “[hjouse repairs promised (to correct building violations)” in the amount of $72,500.00, attaching the same documents submitted with her original claim. The Debtors filed an objection to Claim No. 24 on January 3, 2008, after the claims bar date expired. Subsequent to the Debtors’ objection, An-tunovich filed another claim on February 19, 2008 alleging an unsecured priority claim for $1,044,063.91 for “[djeceit/mis-representation of condition of house to buyer and bank.” Although Antunovich checked the “amends” box of the claim form, the clerk mistakenly filed this as a new claim, Claim No. 87. Attached to this claim was a single page titled “Summary of Amended Claim,” containing an itemization of her loan amount and down pay[566]*566ment, monthly payments for twenty-three months, property taxes, homeowner’s insurance and attorney’s fees, all totaling the amount of her new claim. Simultaneously with the filing of this claim, Antunovich filed a second response to the Debtors’ claim objection alleging fraud by Kinsella in connection with the purchase of her home. On March 20, 2008, Antunovich filed a motion for “Leave to Amend Claim 24-2 of Kathy Antunovich” and filed Claim No. 24-3, as an amendment to Claim No. 24-2, with the clerk in the amount of $145,000.00, based on fraud. She asserts her last two claim amendments, Claim No. 87 and Claim No. 24-3, were filed because she came across new information that she concedes had been available to the public before the claims bar date.

Included in the claims for various Chicago Building Code violations is a claim for a “gate” designed to correct a structural issue which is not included in the objection. However, based on her pleadings and claims, her claims, in part, are undecipherable.

III. Discussion

The Debtors object to Antunovich’s claims on several grounds. They contend that Claim No. 87 and Claim No. 24-3 should be disallowed because they were filed after the claims bar date. They disagree with Antunovich’s contention that they amend her prior timely-filed claim. Instead, the Debtors argue that Claim Nos. 87 and 24-3 do not relate back to Antunovich’s original claim because they assert claims that are wholly different than the timely-filed claims. Further, the Debtors object to Claim No. 24-2 because all applicable warranty repair items were previously addressed and any current defects are outside the one-year warranty period on the home.

A. Antunovich’s Amended Claims Filed After the Claims Bar Date

Antunovich argues that Claim No. 87 and/or Claim 24-3 amend timely filed Claim No. 24-2 and should be allowed. The Debtors contend Claim Nos. 87 and 24-3 are separate claims filed after the claims bar date and should be disallowed.

In chapter 11 bankruptcy cases, the court sets bar dates for creditors to file proofs of claims. In re Nat’l Steel Corp., 316 B.R. 510, 514 (Bankr.N.D.Ill.2004). These dates are integral to the bankruptcy case, allowing efficient administration of the case and effective resolution of disputes. Id. (citing In re Stavriotis, 977 F.2d 1202, 1206 (7th Cir.1992)). Claims filed after the bar date disrupt the orderly administration of the estate and are generally disallowed. Matter of Unroe, 937 F.2d 346, 351 (7th Cir.1991). However, a creditor may, in certain instances, amend a timely filed claim. Stavriotis, 977 F.2d 1202, 1206 (7th Cir.1992). However, the right to amend a claim after the bar date is not unqualified. Id. “[Otherwise, a party could effectively help itself to automatic extensions of the bar date without seeking leave of the court” allowing any “creditor ... [to] file grossly misleading proofs of claim and later amend those claims as of right at their leisure, whenever they decided to calculate the extent of the actual debt claimed to be owed.” Id. Amendments filed after the bar date are carefully scrutinized to ensure that a new claim is not filed under the guise of an amendment. In re AM Int'l, Inc., 67 B.R. 79, 81 (N.D.Ill.1986).

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