Unpublished Disposition, 874 F.2d 815 (9th Cir. 1987)Annotate this Case
In re BRAZIER FOREST PRODUCTS, Debtor.UNITED STATES of America Plaintiff-Appellant,v.BRAZIER FOREST PRODUCTS, Defendant-Appellee.
United States Court of Appeals, Ninth Circuit.
Argued and Submitted April 5, 1989.Decided April 20, 1989.
Before PREGERSON, BOOCHEVER and NOONAN, Circuit Judges.
Cascade filed suit in Brazier's name for breach of contract
against the Forest Service in the Court of Claims because
Cascade was barred, as a subcontractor of Brazier, from
suing the government directly.
When Brazier later filed for bankruptcy, it did not schedule
Cascade's suit with the Court of Claims as an asset of the
bankrupt estate, and Cascade was not notified of the
deadline for the filing of a creditor's claim. The Forest
Service subsequently moved to dismiss Cascade's Court of
Claims suit, arguing that Brazier's reorganization plan did
not mention the Court of Claims suit, and that this omission
barred Cascade's claim against Brazier and the Forest
Service. The Court of Claims refused to dismiss the suit,
and the Bankruptcy Court permitted Cascade to file its claim
as a separate debt in order to negate any collateral effect
on the Court of Claims suit. The District Court held that
the Bankruptcy Court's action was proper.
In this appeal, the government argues that the Bankruptcy
Court erred in permitting Cascade to file a late proof of
claim. The government also contends that the classification
of Cascade's claim as a separate, unsecured debt was
erroneous, violating the principle of equal protection of
creditors which underlies the bankruptcy laws. For the
reasons set forth in its November 6, 1987 Order, the
District Court properly found that the Bankruptcy Court was
correct to allow Cascade to file a late claim and to
classify Cascade's claim as a separate debt.
This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by 9th Cir.R. 36-3