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Creditors Take Heed

By John H. Bae and George Pagano
February 27, 2006

The United States Court of Appeals for the Third Circuit in Hefta v. Official Comm. of Unsecured Creditors (In re Am. Classic Voyages Co.), 405 F.3d 127 (3d Cir. 2005), recently addressed the issue of whether informal proofs of claim may satisfy a creditor's obligation to file a proof of claim under Rules 3001 and 5005 of the Federal Rules of Bankruptcy Procedure. The court held that a letter sent by the creditor's attorney to the debtor's claims agent stating that the creditor had sustained a workplace injury and had a claim against the debtor did not qualify as a proof of claim to satisfy Bankruptcy Rules 3001 and 5005. The court held that the bankruptcy court properly denied the employee's motion for relief from the automatic stay to prosecute his claim and the motion to file a late claim.

Background

Scott Hefta was an employee of the Delta Queen riverboat. While working on the riverboat in June 2000, he sustained personal injuries. 405 F.3d at 129. The vessel was owned and operated by American Classic or its subsidiary, Delta Queen Steamboat Company (“American Classic” or the “Debtors”). Hefta reported the injury to American Classic the day immediately following his injury. He then retained counsel, and the attorney sent American Classic a letter dated June 15, 2001, to advise it of Hefta's injury and claim. American Classic acknowledged receipt of the letter on July 19, 2001. Id.

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