Jackson v. Le Centre on Fourth, LLC, No. 20-12785 (11th Cir. 2021)
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Jackson was traveling in his wheelchair along a street near the Louisville Embassy Suites Hotel when he was hit by a hotel valet driver. He suffered severe injuries. Jackson sued, in Kentucky state court, several entities connected to the hotel, including Le Centre, the owner of the hotel property. Le Centre had filed for Chapter 11 bankruptcy protection before the suit was filed; its reorganization disclosure statement explained that Le Centre’s Chapter 11 plan included the release not only of Le Centre but also of related non-debtor parties. Jackson's attorney received an amended version of the disclosure statement and a copy of the plan. Le Centre did not serve Jackson with a specific form of notice required by the Federal Rules of Bankruptcy Procedure, however.
After the approved Chapter 11 plan went into effect, Le Centre and two other released entities moved to dismiss in the state court action as barred by the confirmation order. Jackson sought to proceed nominally against these entities to reach their insurers. The bankruptcy court denied this request. The district court and Eleventh Circuit affirmed. Jackson received sufficient notice to satisfy due process and the bankruptcy court did not abuse its discretion by ruling that Jackson could not pursue the nominal claims.
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