| ABI

March 7, 2025

Claim Isn’t Disallowed if the ‘Statute’ Lapses After the Claim Is Filed, Third Circuit Says

The Third Circuit upheld Bankruptcy Judge Goldblatt of Delaware where the answer was self-evident but there was no controlling authority.

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Opinion Link

View Opinion

https://abi-opinions.s3.us-east-1.amazonaws.com/Promise+Healthcare+3d+Cir.pdf

Case Details

Case Citation

In re Promise Healthcare Group LLC, 24-2159 (3d Cir. March 3, 2025)

Case Name

In re Promise Healthcare Group LLC

Case Type

Business

Court

3rd Circuit

Bankruptcy Tags

Claims

Practice and Procedure

Venue/Jurisdiction

Business Reorganization

Comments

Submitted by Ralph Landy on March 7, 2025

Excellent article and a strong opinion written by Judge Rendell. I'm surprised the opinion did not clearly express that under 11 U.S.C. 362, the automatic stay prohibits the creditor from filing a state-law malpractice claim in state court. Had the creditor done so post-petition, the liquidating trustee could have filed a motion for sanctions against the creditor for violating the automatic stay.