Opinion ID: 423659
Heading Depth: 2
Heading Rank: 1

Heading: Bar Date

Text: 11 National Bank contends that the bankruptcy court abused its discretion in entertaining RepublicBank's objections after the established bar date. In support of this position, National Bank argues that RepublicBank's claim of newly discovered evidence was not supported by any evidence and that the untimely nature of the objection resulted in unfair surprise and prejudice to National Bank. We find that this threshold argument lacks merit. 12 In the court below, RepublicBank claimed that certain facts relevant to the issue of ownership of the gunshop did not come to its attention until after the bar date had passed. The question of whether Oak Hill Gun Shop was a sole proprietorship or a partnership prior to its sale to McBee by Colley affects National Bank's claim of priority. The bankruptcy court was presented with conflicting evidence as to when RepublicBank learned, or reasonably should have learned, the facts giving rise to the ownership issue. Given our reading of the record below, we find support for concluding that RepublicBank was unaware before the bar date of facts which might provide it a basis for an objection. 13 We also are unable to discern any valid grounds for National Bank's claim of unfair surprise. National Bank does not contend that it was unaware of the facts giving rise to the substance of RepublicBank's objection. Rather, it contends that the last minute objection prejudiced its ability to present its case fully and capably. National Bank urges it was prevented from preparing additional witnesses and documents and from engaging in additional investigation and discovery. National Bank does not provide any additional, specific indication of the evidence which it would have been able to present upon further investigation. Our review of the record reveals that National Bank called several witnesses and introduced a number of exhibits pertinent to the issue of the gun shop's ownership. If National Bank had in fact believed itself unprepared to go on with the May 7 hearing when RepublicBank surprised it with an objection, National Bank should have moved for a continuance. But it did not do so. National Bank's claim of unfair surprise because it was unprepared to proceed, if valid, could easily have been cured by a motion for continuance below. We find it not justified to disturb the bankruptcy court's order on the basis of this objection. 14 We conclude, therefore, that the bankruptcy court did not abuse its discretion in allowing RepublicBank to file its objection after the bar date. The court's factual determination that newly discovered evidence had been revealed to RepublicBank after the bar date had passed was not clearly erroneous. Similarly, we find no error in the court's conclusion that this evidence justified allowance of RepublicBank's untimely objection. Finally, we conclude that National Bank's claim of unfair surprise, even if valid, cannot be considered here as National Bank should have, but did not, seek a continuance below. See Fed.R. Bankruptcy 924 and Fed.R.Civ.P. 60 (new evidence as ground for relief from final judgment); Fed.R.Civ. 15(a) (leave to amend shall be freely given when justice so requires).