In re Kelco Metals, Inc.

532 B.R. 912, 2015 Bankr. LEXIS 2314, 61 Bankr. Ct. Dec. (CRR) 77, 2015 WL 4234082
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedJuly 13, 2015
DocketCase No. 10bk51428
StatusPublished
Cited by37 cases

This text of 532 B.R. 912 (In re Kelco Metals, Inc.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Kelco Metals, Inc., 532 B.R. 912, 2015 Bankr. LEXIS 2314, 61 Bankr. Ct. Dec. (CRR) 77, 2015 WL 4234082 (Ill. 2015).

Opinion

MEMORANDUM DECISION

Timothy A. Barnes, United States Bankruptcy Judge

Before the court is the Amended Motion to Allow Claim and Amend Trustee’s Final Report in Part (the “Amended Motion ”), filed by BCC Steel, Inc. (“BCC”), in which BCC seeks to have the court allow its claim and deem that claim timely under Rule 9006(b)(1) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules ” and hereinafter as to each, “Rule _.”), and have the court amend the approved final report to include its claim. Horace Fox, Jr. (the “Trustee ”), in his capacity as trustee of the bankruptcy estate of Kelco Metals, Inc. (the “Debtor ”), argues that BCC failed to properly file its claim electronically, that BCC is not entitled to relief under Rule 9006 or otherwise, and that BCC is not entitled, to distributions under a final report. For the reasons set forth herein, the court denies the Amended Motion.

[914]*914JURISDICTION

Federal district courts have “original and exclusive jurisdiction” of all cases under title 11 of the United States Code (the “Bankruptcy Code ”). 28 U.S.C. § 1334(a).. Federal district courts also have “original but not exclusive jurisdiction” of all civil proceedings arising under the Bankruptcy Code, or arising in, or related to cases under title 11. 28 U.S.C. § 1334(b). District courts may, however, refer these cases to the bankruptcy judges for their districts. 28 U.S.C. § 157(a). In accordance with section 157(a), the District Court for the Northern District of Illinois has referred all of its bankruptcy cases to the Bankruptcy Court for the Northern District of Illinois. N.D. Ill. Internal Operating Procedure 15(a).

A bankruptcy judge to whom a case has been referred may enter final judgment on any core proceeding arising under the Bankruptcy Code or arising in a case under title 11. 28 U.S.C. § 157(b)(1). A motion regarding the allowance of claims against the bankruptcy estate may only arise in a case under title 11 and is specified as a core proceeding. 28 U.S.C. § 157(b)(2)(B). Such matters are within the court’s constitutional authority. Stern v. Marshall, — U.S. -, 131 S.Ct. 2594, 2618, 180 L.Ed.2d 475 (2011).

Accordingly, final judgment is within the scope of the court’s authority.

PROCEDURAL HISTORY

In considering the Amended Motion, the court has considered the arguments of the parties at the February 25, 2015 hearing on the Final Report (as defined below), the March 10, 2015 hearing on the Original Motion (as defined below) and the May 19, 2015 hearing on the Amended Motion, and has reviewed the Amended Motion [Dkt. No. 164], the attached exhibits submitted in conjunction therewith and each of the following:

(1) Notice Fixing Time for Filing Claims [Dkt. No. 16] (the “Bar Date Notice ”);
(2) BNC Certificate of Service — Notice Fixing Time for Filing Claims [Dkt. No. 18], with B10 (Official Form 10) — Proof of Claim (the “Proof of Claim F.orm ”);
(3) Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors & Deadlines [Dkt. No. 21] (the “34,1 Notice ”);
(4) Trustee’s Final Report [Dkt. No. 151];
(5) Notice of Trustee’s Final Report and Application for Compensation and Deadline to Objection (NFR) [Dkt. No. 155] (the “Final Report Notice ”);
(6) Amended Trustee’s Final Report (TFR) [Dkt. No. 158] (the “Final Report ”);
(7) Motion to Allow Claim' [Dkt. No. 161] (the “Original Motion ”);
(8) Response of Horace Fox, Jr., as Trustee, to Amended Motion to Allow Claim and Amend Trustee’s Amended Final Report In Part [Dkt. No. 172] (the “Response”); and
(9) BCC Steel’s Reply to Trustee Horace Fox’s Response to BCC’s. Memorandum in Support of Its Amended Motion to Allow Claim and Amend Trustee’s Amended Final Report In Part Pursuant to Federal Rules of Bankruptcy Procedure 9006(b) [Dkt. No. 173] (the “Reply”)-

The court has also taken into consideration any and all exhibits submitted in conjunction with the foregoing. Though these items do not constitute an exhaustive [915]*915list of the filings in the above-captioned bankruptcy case, the court has taken judicial notice of the contents of the docket in this matter. See Levine v. Egidi, No. 93C188, 1993 WL 69146, at *2 (N.D.Ill. Mar. 8, 1993) (authorizing a bankruptcy court to take judicial notice of its own docket); In re Brent, 458 B.R. 444, 455 n. 5 (Bankr.N.D.Ill.1989) (Goldgar, J.) (recognizing same).

BACKGROUND

This matter arises out of multiple failures of a creditor, BCC, to comply with the local rules and orders of the court. BCC now seeks to rectify those failures in the form of a motion that has no statutory basis or case law to support it.

In order to understand BCC’s request, the history of what has transpired must be considered. This bankruptcy case was commenced by seven of the Debtor’s creditors .on November 17, 2010. BCC was one of the petitioning creditors. Shortly thereafter, the court entered an order for involuntary relief as to the Debtor under chapter 7 of the Bankruptcy Code and appointed the Trustee to administer the bankruptcy estate.

The Trustee determined that there were assets to be administered for .the benefit of creditors and filed the Bar Date Notice on January 12, 2011. The Bar Date Notice states, in bold, “[ajttorneys must file this claim electronically via the C1WECF system. Non-Attorneys may file in person or by mail at the Clerk of the Bankruptcy Court’s address shown at the top of the form. If you wish to file a claim, please use the attached Proof of Claim form.” Bar Date Notice, at 1 (emphasis added). The Bar Date Notice was mailed with the Proof of Claim Form to BCC at the address provided by the petitioning creditors.

The clerk of the court sent out the. 341 Notice — derived from a national bankruptcy form for use in chapter 7 cases — on January 20, 2011. The 341 Notice, which also provides information on filing claims, provided that May 17, 2011 was the deadline for all creditors (except a governmental unit) to file a claim (the “Bar Date ”). The 341 Notice was mailed to BCC at the address noted above.

BCC alleges that, on .April 11, 2011, it tendered a paper copy of its claim (the “BCC Claim ”) to the office of the clerk of the court and received a copy of the claim with a stamp from the clerk of the court indicating that the BCC Claim had been received on the same date.

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Bluebook (online)
532 B.R. 912, 2015 Bankr. LEXIS 2314, 61 Bankr. Ct. Dec. (CRR) 77, 2015 WL 4234082, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-kelco-metals-inc-ilnb-2015.