Opinion ID: 221482
Heading Depth: 3
Heading Rank: 1

Heading: Disclosure Statement

Text: We first address Laguna's argument that this court may not consider the disclosure statement alongside the plan to determine whether the trustee has standing. Although no court of appeals has addressed whether the disclosure statement may be consulted for purposes of standing, courts routinely consult the disclosure statement in deciding whether res judicata and judicial estoppel apply. See, e.g., Browning Mfg. v. Mims (In re Coastal Plains, Inc.), 179 F.3d 197, 208 (5th Cir.1999) (explaining that claims must be revealed in plan and disclosure statement or trustee may be judicially estopped from pursuing them); Browning v. Levy, 283 F.3d 761, 774 (6th Cir.2002) (considering whether the disclosure statement properly preserved claims or whether res judicata and judicial estoppel should be applied); In re Kelley, 199 B.R. 698, 704 (9th Cir. BAP 1996) (holding that if the debtor fails to mention the cause of action in either his schedules, disclosure statement, or plan, then he will be precluded from asserting it postconfirmation). In addition, several lower courts have held that, with respect to standing, [c]ourts are to consider the disclosure statement as well as the terms of a plan of reorganization. Floyd v. CIBC World Mkts., Inc., 426 B.R. 622, 637-38 (S.D.Tex.2009). By contrast, at least one other court has held that language in the disclosure statement cannot satisfy the statutory requirement in 11 U.S.C. § 1123(b)(3)(B) that the retention and [right of] enforcement of claims be set forth in the [p]lan. See Ice Cream Liquidation, Inc. v. Calip Dairies, Inc. (In re Ice Cream Liquidation), 319 B.R. 324, 333 n. 14 (Bankr.D.Conn.2005). But § 1123(b)(3)(B) does not explicitly or implicitly address whether claims may also be preserved in the disclosure statement. We observe that the disclosure statement is the primary notice mechanism informing a creditor's vote for or against a plan. See 11 U.S.C. § 1125. Considering the disclosure statement to determine whether a post-confirmation debtor has standing is consistent with the purpose of In re United Operating 's requirement: placing creditors on notice of the claims the post-confirmation debtor intends to pursue. See 540 F.3d at 355. In light of the role served by the disclosure statement, the purpose behind the rule in In re United Operating, and the fact that, in similar contexts, courts routinely consider the disclosure statement to determine whether a claim is preserved, we hold that courts may consult the disclosure statement in addition to the plan to determine whether a post-confirmation debtor has standing.