Doe J.J. v. Bettinelli

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 21-2916
Decision Date: 
July 18, 2022
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed

Dist. Ct. did not err in affirming Bankruptcy Ct. order dismissing as untimely creditor’s proof of claim, which was submitted five months after deadline for doing so. Record showed that: (1) debtor (USA Gymnastics) filed Chapter 11 bankruptcy petition in response to overwhelming number of claims submitted by gymnasts, who alleged that they were sexually assaulted by Larry Nassar; and (2) debtor mailed notice of deadline for filing proof of claim to individuals it viewed as potential claimants, emailed said notice to current and former members of debtor’s organization and placed information about deadline on its website, social media pages, USA Today and gymnast journals. While creditor, who also claimed that she was sexually assaulted by Nassar, stated that she did not become aware of deadline until after it had passed, and that she was entitled to actual notice of deadline, Ct. of Appeals found that creditor was entitled only to constructive notice of deadline, which debtor had provided, where creditor had failed to show that debtor had records of her medical visits with Nassar, and where Michigan law did not require that debtor possess such records. As such, creditor failed to show that she was “reasonably ascertainable creditor” for purposes of being entitled to actual notice of deadline.