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Opinion 298

Case Name: 

Dahlstrom v. Placer U.S., Inc. (In re Dahlstrom)

Judge: 
Judge Clark
Date: 
Apr-3-1990
Case Number(s): 
89PC-0653
Status: 

UNPUBLISHED

Body: 

The court granted creditor's motion to dismiss the chapter 11 debtor's complaint that had sought to prevent creditor from enforcing its state court judgment. Debtor argued that creditor's claim had been discharged, pursuant to 11 U.S.C. § 1141(d)(1)(A), when debtor's plan of reorganization was confirmed. Creditor had filed a proof of claim in debtor's bankruptcy, but debtor had not amended his schedules or his mailing matrix to reflect that claim. As such, creditor did not receive formal notice of matters in the bankruptcy proceeding. Relying on Reliable Elec. Co. v. Olson Constr. Co., 726 F.2d 620 (10th Cir. 1984), the court concluded that debtor's failure to give defendant reasonable notice of the plan confirmation hearing constituted a denial of due process that rendered creditor's claim not subject to the plan and, therefore, not discharged. The court further ruled that creditor, similar to the one in the Reliable case, had acted reasonably by expecting that it would receive the same formal notice of the confirmation hearing as did debtor's other creditors. Finally, the court ruled that debtor's attempt to attack the validity of creditor's judgment was an attempt to use Fed. R. Civ. P. 60(b) as a substitute for appeal, which was not permitted.

Internal Ref: 
Opinion 298
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