Opinion ID: 499748
Heading Depth: 1
Heading Rank: 3

Heading: Filing a Late Proof of Claim

Text: 44 Resolution of the claim issue, however, does not end our inquiry. The bankruptcy court also concluded that the government should be permitted to file a late proof of claim. This determination was premature. 45 Remington acknowledges that it failed to provide the government, a known creditor, with proper notice of the bar date for claims under the plan. Accordingly, the government was entitled to request permission to file a late proof of claim. City of New York v. New York, N.H. & H.R. Co., 344 U.S. 293, 297, 73 S.Ct. 299, 301, 97 L.Ed. 333 (1953); In re Harbor Tank Storage, 385 F.2d 111, 115-16 (3d Cir.1967). Upon receipt of such a request, however, the bankruptcy court must examine the totality of the circumstances before allowing a late filing. 46 Here, the bankruptcy court erred by granting this permission in the context of a summary judgment motion without first determining whether the government acted promptly and diligently. See In re Pagan, 59 B.R. 394, 396-97 (D.P.R.1986); In re Arnold Print Works, Inc., 47 B.R. 288, 290 (Bankr.D.Mass.1985); In re Cmehil, 43 B.R. 404, 408 (Bankr.N.D. Ohio 1984). Because finality is particularly important in bankruptcy proceedings, creditors cannot wait indefinitely before filing a proof of claim. In re Arnold Print Works, Inc., 47 B.R. at 290. 47 The government first received official notification of the Chapter 11 proceedings in March and July, 1982, when Remington announced its position that the $394,773 claim had been discharged by confirmation of the plan in December, 1981. Moreover, the pre-award audit indicates that government auditors informally learned of the Chapter 11 proceeding as early as April, 1981. Nevertheless, the government waited until April, 1985 to assert its right to payment. 48 Although we are presented with the relevant dates, we are unable to decide on this record whether the government has any legal justification for requesting the filing of a late proof of claim. With fact-specific questions such as this, a sterile appellate record fails to tell the full story. Therefore, we believe that the bankruptcy judge, with the benefit of a fully developed record on this issue, is better suited to make such findings. 49 Based on the foregoing, we will vacate the judgment of the district court and remand for further proceedings consistent with this opinion.