In Re Sterling Rubber Products Co.

316 B.R. 485, 2004 Bankr. LEXIS 1657, 43 Bankr. Ct. Dec. (CRR) 222, 2004 WL 2387479
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedOctober 25, 2004
Docket03-40549
StatusPublished
Cited by5 cases

This text of 316 B.R. 485 (In Re Sterling Rubber Products Co.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Sterling Rubber Products Co., 316 B.R. 485, 2004 Bankr. LEXIS 1657, 43 Bankr. Ct. Dec. (CRR) 222, 2004 WL 2387479 (Ohio 2004).

Opinion

LAWRENCE S. WALTER, Bankruptcy Judge.

DECISION OF THE COURT:

1) DENYING SPENCER CENTRAL DEVELOPERS, LLC’S MOTION TO HAVE PROOF OF CLAIM DEEMED TO BE TIMELY FILED

-AND-

2) DENYING SPENCER CENTRAL DEVELOPERS, LLC’S MOTION FOR RELIEF FROM JUDGMENT OR ORDER PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 9024

This matter is before the court on the following filings of record: Creditor Spencer Central Developers, LLC’s Motion to Have Proof of Claim Deemed to be Timely Filed and Response to Debtor’s and Debtor-in-Possession’s Remaining Objections of Record [Doc. 128]; Spencer Central Developers, LLC’s Motion for Relief from Judgment or Order Pursuant to Federal Rule of Bankruptcy Procedure 9024 [Doc. 132]; Spencer Central Developers, LLC’s Response to Debtor’s and Debtor-in-Possession’s Objections of Record [Doc. 134]; Objection of Debtor and Debtor in Possession, the Sterling Rubber Products Company, to the Motion of Spencer Central Developers, LLC for Relief from Judgment or Order Pursuant to Federal Rule of Bankruptcy Procedure 9024 [Doc. 140]; Reply of Debtor and Debtor in Possession, the Sterling Rubber Products Company, to Response of Spencer Central Developers, LLC to Debtors’ and Debtor-in-Possession’s Objections of Record [Doc. 142]; and Objection of Debt- or and Debtor in Possession, the Sterling *487 Rubber Products Company, to Motion Filed by Spencer Central Developers, LLC to Have Proof of Claim Deemed to be Timely Filed and Response to Debtor’s and Debtor-in-Possession’s Remaining Objections of Record [Doc. 144].

Creditor Spencer Central Developers, LLC (“SCD”) filed its motions for relief from judgment and to have its claim deemed timely filed in response to the court’s Order Sustaining Objection of Debtor and Debtor in Possession, the Sterling Rubber Products Company, to Proof of Claim of Spencer Central Developers, LLC and Disallowing Claim for All Purposes [Doc. 122], The court order was entered after SCD failed to file a timely response to Debtor Sterling Rubber Products Company’s objection to SCD’s proof of claim [Doc. 105].

The court held a hearing on SCD’s motions and the Debtor’s responses and objections on August 5, 2004. The following constitutes the courts findings of fact and conclusions of law.

FACTUAL AND PROCEDURAL BACKGROUND

On April 15, 2004, Creditor SCD filed its proof of claim in this bankruptcy case in the amount of $256,238.33 based on a pre-petition judgment and a claim for attorney fees. [Proof of Claim # 98.] The proof of claim was filed on April 15, 2004 which was one day after the April 14, 2004 bar date set by court order for the filing of proofs of claim in this Chapter 11 bankruptcy case. [Doc. 62, Order Fixing Proof of Claims Bar Date.] A Notice of Last Day to File Proofs of Claim [Doc. 64] was sent to all creditors providing the bar date of April 14, 2004 and this notice:

Whether or not your claim is scheduled, you are permitted to file a Proof of Claim. If your claims [sic.] is not listed at all or if your claim is listed as disputed, contingent, or unliquidated, then you must file a Proof of Claim by the deadline listed above or you may not be paid any money on your claims against the debtor in the bankruptcy case.

SCD’s claim was scheduled as “disputed” and SCD acknowledges that it was required by the language of the notice to file its claim by April 14, 2004.

Because SCD filed its proof of claim one day after the deadline, the Debtor filed an objection to SCD’s proof of claim with a notice of objection. [Doc. 105.] In the objection, the Debtor argued that the claim should be disallowed in full for two reasons: 1) for the untimely filing of the claim; and 2) for substantive reasons based on a Release Agreement with an entity related to the Debtor that, the Debtor argues, releases the Debtor from liability for SCD’s claims against it. Furthermore, the Debtor asserted that, if the claim were to be allowed, it should be reduced by the $32,616.29 in attorney fees requested by SCD because no attorney fee award was ever granted to SCD in any court.

On the final page of the Debtor’s objection, below the certificate of service, the Debtor includes what is titled as a “Notice of Objection to Claim.” [Doc. 105, p. 9.] The notice is highlighted by a text box (a lined border framing the text), and certain salient language is bolded and underlined. Id. The notice includes the following language:

NOTICE OF OBJECTION TO CLAIM

Debtor and Debtor in Possession, The Sterling Rubber Products Company (“SRP”), has filed an objection to your claim in this bankruptcy case.
Your claim may be reduced, modi-fíed or eliminated. You should read these papers carefully and discuss *488 them with your attorney, if you have one.
If you do not want the court to eliminate or change your claim, then on or before June 2, 2004, you or your attorney must file with the court a written response to the objections, explaining your position, at the Clerk’s Office, United State [sic.] Bankruptcy Court for the Southern District of Ohio, Dayton Office, 120 W. Third Street, Dayton, Ohio 45402.
If you mail your response to the court for filing, you must mail it early enough so that the court will receive it on or before the date stated above.
You must also mail a copy to Lawrence T. Burick, Esq., Thompson Hine LLP, 2000 Courthouse Plaza, N.E., Dayton, Ohio 45402.
If you or your attorney do not take these steps, the court may decide that you do not oppose the objection to your claim.

Id. (emphasis, including bold and underlining, is part of the text of the actual notice). The Debtor’s objection to SCD’s proof of claim and notice were served by regular mail on SCD’s attorney, and filed with the court, on May 3, 2004. Id.

SCD did not file a response to the Debt- or’s objection within the time period proscribed in the notice and the pertinent Local Bankruptcy Rule. Following the expiration of the deadline for SCD to file a response to the Debtor’s objection, the court entered an order on June 7, 2004 noting that no response to the Debtor’s objection had been filed and disallowing SCD’s claim in full. [Doc. 122.]

On June 14, 2004, SCD filed its Motion to Have Proof of Claim Deemed to Be Timely Filed [Doc. 128] and, subsequently, a Motion for Relief from Judgment or Order [Doc. 182]. The court held a hearing to consider the motions and Debtor responses on August 5, 2004.

At the hearing, the Debtor did not dispute the evidence establishing that SCD timely prepared and sent its proof of claim to the bankruptcy court on April 13, 2004, one day prior to the deadline. [Doc. 128, Exs. A and B.] SCD sent the parcel using the U.S. Postal Service’s guaranteed overnight delivery. Id. A tracking notice from the U.S.

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Bluebook (online)
316 B.R. 485, 2004 Bankr. LEXIS 1657, 43 Bankr. Ct. Dec. (CRR) 222, 2004 WL 2387479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sterling-rubber-products-co-ohsb-2004.