OH Farmers Ins Co v. Leet

Bankruptcy Appellate Panel of the Sixth Circuit·Decided March 26, 2002·No. 01-8046·Published

Opinion

(/(&7521,&&,7$7,21)('$SS3 WK&LU

)LOH1DPHES

%$1.5837&<$33(//$7(3$1(/2)7+(6,;7+&,5&8,7

,QUH'$1,(//((7

'HEWRU

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB   2+,2)$50(56,1685$1&(  &203$1<DQG'$1,(/%$51(6

3ODLQWLIIV$SSHOOHHV

Y

12

'$1,(//((7

'HIHQGDQW$SSHOODQW

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $SSHDOIURPWKH8QLWHG6WDWHV%DQNUXSWF\&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLR<RXQJVWRZQ'LYLVLRQ 1R$GY31R

6XEPLWWHGRQ%ULHIV)HEUXDU\

'HFLGHGDQG)LOHG0DUFK

%HIRUH$8*%52:1DQG&22.%DQNUXSWF\$SSHOODWH3DQHOsXGJHV

BBBBBBBBBBBBBBBBBBB

&2816(/

21%5,()0DXUXV*0DOYDVL*LUDUG2KLRIRU$SSHOODQW&DUROH$/RKU&OHYHODQG 2KLRIRU$SSHOOHHV



BBBBBBBBBBBB

23,1,21 BBBBBBBBBBBB

s2+1&&22.%DQNUXSWF\$SSHOODWH3DQHOsXGJH7KLVLVDQDSSHDOE\'DQLHO /HHW WKH 'HEWRU IURP DQ LQWHUORFXWRU\ RUGHU RI WKH EDQNUXSWF\ FRXUW SHUPLWWLQJ WZR FUHGLWRUV2KLR)DUPHUV,QVXUDQFH&RPSDQ\DQG'DQLHO%DUQHV m&UHGLWRUV WRSURFHHG ZLWKWKHLUFRPSODLQWWRGHWHUPLQHGLVFKDUJHDELOLW\XQGHU86&†GHVSLWHWKHIDFW WKDW WKH FRPSODLQW ZDV ILOHG WZR GD\V ODWH  7KH EDQNUXSWF\ FRXUW LQYRNHG  86& † D  DQG LWV HTXLWDEOH SRZHUV WR H[WHQG WKH GHDGOLQH E\ WZR GD\V ILQGLQJ WKDW WKH &UHGLWRUVjDWWRUQH\LQ&OHYHODQG2KLRKDGPDLOHGWKHFRPSODLQWE\UHJXODUPDLOWRWKH EDQNUXSWF\FRXUWFOHUNjVRIILFHLQ<RXQJVWRZQ2KLREHIRUHWKHFORVHRIEXVLQHVVRQ0DUFK LQZKDWVKRXOGKDYHEHHQVXIILFLHQWWLPHWRDVVXUHLWVDUULYDORQ0DUFK WKHILOLQJGHDGOLQH7KHFRXUWIXUWKHUIRXQGWKDWFRXQVHOjVH[SHFWDWLRQRIDWLPHO\ILOLQJZDV UHDVRQDEOHDQGWKDWVKHGLGQRWLQWHQGDQ\GHOD\8SRQH[DPLQDWLRQRIWKHUHFRUGDQGWKH EULHIVWKH3DQHOXQDQLPRXVO\DJUHHVWKDWRUDODUJXPHQWZRXOGQRWVLJQLILFDQWO\DLGWKH GHFLVLRQDOSURFHVVLQWKLVDSSHDO)HG5%DQN3)RUWKHUHDVRQVVWDWHGZH 5(9(56(DQG5(0$1'IRUGLVPLVVDORIWKHFRPSODLQW

,,668($1'6&23(2)5(9,(: 7KHVLQJOHLVVXHLQWKLVFDVHLVZKHWKHURUQRWWKHEDQNUXSWF\FRXUWHUUHGLQDOORZLQJ WKH&UHGLWRUVWRILOHWKHLUGLVFKDUJHDELOLW\FRPSODLQWWZRGD\VSDVWWKHGHDGOLQHSURYLGHGIRU LQ)HG5%DQNU3 F 7KHTXHVWLRQSUHVHQWHGLVDOHJDORQHVXEMHFWWRGHQRYR UHYLHZ1LFKROVRQY,VDDFPDQ ,QUH,VDDFPDQ )G WK&LU 1DUGHL Y0DXJKDQ ,QUH0DXJKDQ %5 %$3WK&LU 7KLV3DQHOKDV MXULVGLFWLRQXQGHU86&† D  ZKLFKDOORZVGLVWULFWFRXUWVIRUZKLFKZHDUHD VXEVWLWXWHXQGHU† E WRUHYLHZLQWHUORFXWRU\RUGHUVRIEDQNUXSWF\FRXUWV%\RUGHURI 1RYHPEHUZHJUDQWHGSHUPLVVLRQWRWKH'HEWRUWREULQJWKLVDSSHDO



,,',6&866,21

,Q7D\ORUY)UHHODQG .URQ]866&W  WKH6XSUHPH &RXUWUHEXIIHGDQDUJXPHQWPXFKOLNHWKHRQHPDGHE\WKH&UHGLWRUVKHUHLQZKHQLWKHOG WKDWREMHFWLRQVWRWKHGHEWRUjVFODLPRIH[HPSWLRQVPXVWEHILOHGZLWKLQWKHWKLUW\GD\WLPH SHULRGSURYLGHGIRULQ)HG5%DQNU3 E RUEHZDLYHG7KHEDQNUXSWF\FRXUWKDG HPSOR\HGLWVVXSSRVHGHTXLWDEOHSRZHUVWRHVFDSHWKHFRQILQHVRIWKHUXOHDQGSHUPLWDQ RXWRIWLPHREMHFWLRQEHFDXVHLWEHOLHYHGWKDWWKHGHEWRUKDGFODLPHGWKHH[HPSWLRQLQ TXHVWLRQZLWKRXWDQ\VWDWXWRU\EDVLVIRUVRGRLQJ 7KH6XSUHPH&RXUWUHMHFWHGZKDWLWFDOOHGWKLVmJRRGIDLWKlH[FHSWLRQWRWKHWKLUW\ GD\WLPHSHULRGLQ5XOH E DQGREVHUYHGWKDWm>E@\QHJDWLYHLPSOLFDWLRQWKH5XOH LQGLFDWHVWKDWFUHGLWRUVPD\QRWREMHFWDIWHUGD\V XQOHVVZLWKLQVXFKSHULRGIXUWKHU WLPHLVJUDQWHGE\WKHFRXUW l,GDW HPSKDVLVDGGHG 7KH&RXUWWKHQQRWHGWKDWWKH GHEWRUV DQG WKHLU DWWRUQH\V IDFHG RWKHU SHQDOWLHV RU VDQFWLRQV IRU LPSURSHU FRQGXFW LQFOXGLQJWKRVHPHQWLRQHGLQ86&†DQG)HG5%DQNU3DQGLWFRQFOXGHG VLPSO\WKDWLWKDGmQRDXWKRULW\WROLPLWWKHDSSOLFDWLRQRI>86&@† O WRH[HPSWLRQV FODLPHGLQJRRGIDLWKl,GDW 5XOH E WKHIRFXVRIDWWHQWLRQLQ7D\ORULVVLPLODUWRWKHUXOHDWLVVXHLQWKLV FDVH5XOH F LQWKDWERWKUXOHVSURYLGHDWLPHOLPLWZLWKLQZKLFKSDSHUVPXVWEH ILOHG6XEVHTXHQWWRWKH7D\ORUGHFLVLRQ)HG5%DQNU3 E ZDVDPHQGHGVRWKDW ERWK5XOHV E DQG F QRZVSHFLI\WKDWPRWLRQVIRUH[WHQVLRQVRIWKHWLPHOLPLW

 $W WKH WLPH WKH 6XSUHPH &RXUW GHFLGHG 7D\ORU )HG 5 %DQNU 3  E

SURYLGHG LQ SHUWLQHQW SDUW 7KH WUXVWHH RU DQ\ FUHGLWRU PD\ ILOH REMHFWLRQV WR WKH OLVW RI SURSHUW\ FODLPHG DV H[HPSW ZLWKLQ  GD\V DIWHU WKH FRQFOXVLRQ RI WKH PHHWLQJ RI FUHGLWRUV KHOG SXUVXDQW WR 5XOH  D

RU WKH ILOLQJ RI DQ\ DPHQGPHQW WR WKH OLVW RU VXSSOHPHQWDO VFKHGXOHV XQOHVV ZLWKLQ VXFK SHULRG IXUWKHU WLPH LV JUDQWHG E\ WKH FRXUW

 )HG 5 %DQNU 3  F

SURYLGHV $ FRPSODLQW WR GHWHUPLQH WKH GLVFKDUJHDELOLW\ RI D GHEW XQGHU †  F

VKDOO EH ILOHG QR ODWHU WKDQ  GD\V DIWHU WKH ILUVW GDWH VHW IRU WKH PHHWLQJ RI FUHGLWRUV XQGHU †  D  7KH FRXUW VKDOO JLYH DOO FUHGLWRUV QR OHVV WKDQ  GD\Vj QRWLFH RI WKH WLPH VR IL[HG LQ WKH PDQQHU SURYLGHG LQ 5XOH  2Q PRWLRQ RI D SDUW\ LQ LQWHUHVW DIWHU KHDULQJ RQ QRWLFH WKH FRXUW PD\ IRU FDXVH H[WHQG WKH WLPH IL[HG XQGHU WKLV VXEGLYLVLRQ 7KH PRWLRQ VKDOO EH ILOHG EHIRUH WKH WLPH KDV H[SLUHG



PXVWEHPDGHZLWKLQWKHRULJLQDOWLPHSHULRGVSHFLILHGE\WKHUXOH7KXVLIWKH6XSUHPH &RXUWZHUHUHYLHZLQJWKLVFDVHZHWKLQNLWZRXOGFRQFOXGHWKDWWKHEDQNUXSWF\FRXUWHUUHG ZKHQLWLJQRUHGWKHIDFWWKDWWKHFRPSODLQWZDVQRWILOHGE\WKHRULJLQDOGHDGOLQH:HDOVR WKLQN LW ZRXOG ILQG DV LW GLG LQ 7D\ORU WKDW GHDGOLQHV ZHUH LPSRUWDQW SURGXFWV RI WKH EDQNUXSWF\ UXOHV DQG WKDW WKH\ VKRXOG QRW EH GRFWRUHG ZLWK HTXLWDEOH FRQVLGHUDWLRQV GHULYHGIURP86&† D  ,I7D\ORUZHUHQRWHQRXJKWRFRQYLQFHRQHWKDWWLPHOLPLWVLPSRVHGE\RIILFLDOUXOHV DUHWREHKRQRUHGWKHUHLVWKHPRUHUHFHQWFDVHRI&DUOLVOHY8QLWHG6WDWHV86 6&W  WRKDPPHUWKHSRLQWKRPH,Q&DUOLVOHWKHLVVXHZDVZKHWKHUWKH SURYLVLRQV RI )HG 5 &ULP 3  F  SHUPLW D GLVWULFW FRXUW WR HQWHUWDLQ D PRWLRQ IRU MXGJPHQWRIDFTXLWWDOILOHGRQHGD\ODWH5XOH F SURYLGHVLQWHUDOLDWKDWmDPRWLRQIRU MXGJPHQWRIDFTXLWWDOPD\EHPDGHRUUHQHZHGZLWKLQGD\VDIWHUWKHMXU\LVGLVFKDUJHG RUZLWKLQVXFKIXUWKHUWLPHDVWKHFRXUWPD\IL[GXULQJWKHGD\SHULRGl)HG5&ULP3  F  HPSKDVLVDGGHG 5XOH F LVWKXVVLPLODULQNLQGWR%DQNUXSWF\5XOHV E

DQG  F  LQ WKH GHOLQHDWLRQ RI WLPH SHULRGV DQG WKH SUHVFULSWLRQ RI UXOHV IRU WKHLU H[WHQVLRQ 7KH6XSUHPH&RXUWKHOGWKDWFRXUWVKDGmQRDXWKRULW\lWRH[WHQGWKHILOLQJGHDGOLQHV RIUXOHVHYHQZKHUHDFULPLQDOGHIHQGDQWjVODZ\HUHUUHGLQILOLQJWKHPRWLRQIRUMXGJPHQW RIDFTXLWWDOMXVWRQHGD\ODWH&DUOLVOH86DW,WKHOGWKDWmWKHFDVHODZRIWKLV &RXUWGRHVQRWHVWDEOLVKDQ\µLQKHUHQWSRZHUjWRDFWLQFRQWUDYHQWLRQRIDSSOLFDEOH

 $V DPHQGHG )HG 5 %DQNU 3  E

FXUUHQWO\ SURYLGHV $ SDUW\ LQ LQWHUHVW PD\ ILOH DQ REMHFWLRQ WR WKH OLVW RI SURSHUW\ FODLPHG DV H[HPSW RQO\ ZLWKLQ  GD\V DIWHU WKH PHHWLQJ RI FUHGLWRUV KHOG XQGHU †  D

LV FRQFOXGHG RU ZLWKLQ  GD\V DIWHU DQ\ DPHQGPHQW WR WKH OLVW RU VXSSOHPHQWDO VFKHGXOHV LV ILOHG ZKLFKHYHU LV ODWHU 7KH FRXUW PD\ IRU FDXVH H[WHQG WKH WLPH IRU ILOLQJ REMHFWLRQV LI EHIRUH WKH WLPH WR REMHFW H[SLUHV D SDUW\ LQ LQWHUHVW ILOHV D UHTXHVW IRU DQ H[WHQVLRQ

 $OWKRXJK WKH 6XSUHPH &RXUW LQ 7D\ORU UHIXVHG WR FRQVLGHU  86& † D

EHFDXVH LW KDG QRW EHHQ UDLVHG LQ WKH SHWLWLRQ IRU FHUWLRUDUL RU DUJXHG LQ WKH ORZHU FRXUWV WKHUH ZDV QRWKLQJ LQ 7D\ORU WR VXJJHVW WKDW

HTXLWDEOH FRQVLGHUDWLRQV GHULYHG IURP † D

ZRXOG EH VXIILFLHQW WR ZDUUDQW H[WHQVLRQ RI UXOH GHDGOLQHV 0RUHRYHU LW DSSHDUV LQ 7D\ORU WKDW WKH SHWLWLRQHU V UHOLDQFH RQ † D

LQ VHHNLQJ D GLVDOORZDQFH RI

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

OH Farmers Ins Co v. Leet, (bap6 2002).

OH Farmers Ins Co v. Leet (OH Farmers Ins Co v. Leet) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.