Unpublished Disposition, 874 F.2d 815 (9th Cir. 1987)

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U.S. Court of Appeals for the Ninth Circuit - 874 F.2d 815 (9th Cir. 1987)

In re BRAZIER FOREST PRODUCTS, Debtor.UNITED STATES of America Plaintiff-Appellant,v.BRAZIER FOREST PRODUCTS, Defendant-Appellee.

No. 88-3507.

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