Opinion ID: 552817
Heading Depth: 2
Heading Rank: 2

Heading: Equitable Powers

Text: 24 Zidell argues that the bankruptcy court has equitable discretion, apart from Rule 9006, to grant extensions of time for filing a proof of claim and that the bankruptcy court abused its discretion by not granting such an extension. 5 Zidell bases its argument on the bankruptcy court's equitable jurisdiction and general powers under 11 U.S.C. Sec. 105(a), which states that, the court may issue any order, process or judgment that is necessary or appropriate to carry out the provisions of this title. 25 While Zidell concedes that Rule 9006 does not enable the court to extend time in this case, a discussion of the rule is relevant to whether the court has equitable power independent of the rule to extend time. Under Rule 9006(b), the Bankruptcy Court has some discretion to enlarge the time for filing claims. Rule 9006(b) states: 26 (1) In general. Except as provided in paragraphs (2) and (3) of this subdivision, when an act is required or allowed to be done at or within a specified period ... the court for cause shown may at any time in its discretion ... on motion made after the expiration of the specified period permit the act to be done where failure to act was the result of excusable neglect. 27 .... 28 (3) Enlargement limited. The court may enlarge the time for taking action under Rules ... 3002(c) ... only to the extent and under the conditions stated in those rules. 6 29 Bankruptcy Rule 9006(b). 30 Rule 9006(b) plainly allows an extension of the 90-day time limit established by Rule 3002(c) only under the conditions permitted by Rule 3002(c). Rule 3002(c) identifies six circumstances where a late filing is allowed, and excusable neglect is not among them. Thus, the 90-day deadline for filing claims under Rule 3002(c) cannot be extended for excusable neglect. See In re Pigott, 684 F.2d 239, 242-43, n. 2 (3d Cir.1982) (discussing old Bankruptcy Rules 906 and 302, which are similar to new Rules 9006 and 3002, and finding that Rule 906 on enlarging time explicitly excludes Rule 302(e) from discretionary enlargement except as expressly provided by Rule 302 itself). 31 Zidell acknowledges that the time limit of Rule 3002(c) is not subject to enlargement based on the excusable neglect provision of Rule 9006(b). However, Zidell argues that the bankruptcy court has discretion independent of Rule 9006(b) to enlarge the time under its general equity power. This argument is inconsistent with the express limitations imposed by Rule 9006(b)(3) on the bankruptcy court's discretion to extend time. 32 Several courts have rejected Zidell's argument, holding that Bankruptcy Rule 3002(c) is peremptory and that a bankruptcy court lacks any equitable power to enlarge the time for filing a proof of claim unless one of the six situations in Rule 3002(c) exists. In re S.A. Morris Paving Co., 92 B.R. 161, 163 (Bankr.W.D.Va.1988) (emphasis added); see also In re Guarantee Electric, Inc., 91 B.R. 164, 165 (Bankr.M.D.Fla.1988); In re Wilson, 90 B.R. 491, 493 (Bankr.N.D.Ala.1988); Miller v. Austin, 72 B.R. 893, 894, 897-98 (S.D.N.Y.1987). 7 We agree with these cases and hold that the bankruptcy court cannot enlarge the time for filing a proof of claim unless one of the six situations listed in Rule 3002(c) exists. 8 33 Several courts have found that the bankruptcy court has equitable discretion to extend the filing time. One case involved creditors whose filing was late because of erroneous information provided to them by a bankruptcy court clerk. In re Williams, 8 B.R. 802 (Bankr.S.D.Fla.1981). Most of the cases allowing late filing of claims involve creditors who did not receive notice of the claims bar deadline. In re Intaco, 494 F.2d 94 (1st Cir.1974) (creditor not given notice of the claims filing deadline); In re Pine Associates, Inc., 35 B.R. 49, 51 (Bankr.D.Conn.1983) (creditor lacked actual knowledge of bar date for filing case in a Chapter 11 proceeding); See also In re Cmehil, 43 B.R. 404, 408 (Bankr.N.D.Ohio 1984) (stating that the only exception to the strict enforcement of the deadline for filing claims is when the creditor not listed on the schedule fails to receive notice of the bar claims date but refusing to allow late filing where creditor waited two years after receiving notice of the bankruptcy to file). 9 However, we do not believe that those cases can be reconciled with Rule 3002(c).