Opinion ID: 693412
Heading Depth: 3
Heading Rank: 2

Heading: Consideration of the Relation Back Doctrine

Text: 26 Dominguez argues, however, that the court should not allow the declaratory judgment complaint to relate back to the Discharge Memorandum. First, he relies on the importance of strict adherence to the bar date 6 in the procedural rules to support the Code's goal of protecting debtors by allowing them to get on with their lives after bankruptcy. See, e.g., Schunck v. Santos (In re Santos), 112 B.R. 1001, 1006 (9th Cir. BAP 1990) (finding that time limits serve the 'fresh start' goals of bankruptcy relief [which allow] a debtor to enjoy finality and certainty in relief from financial distress as quickly as possible) (citations omitted); Sam Michael Schreiber, M.D., Inc. v. Halstead (In re Halstead), 158 B.R. 485, 487 (9th Cir. BAP 1993) (noting that the Ninth Circuit strictly construes the bar date rules, but allowing equitable tolling when the court misleads creditors by citing an erroneous bar date). 27 Acceptance of this argument in this context would elevate form over substance and defeat the explicit purpose of the relation back doctrine for amendments to complaints. The allegations and type of evidence necessary to succeed in an adverse action based on section 1141(d)(3) are identical to those raised in the Millers' original Discharge Memorandum. Dominguez cannot claim surprise that the declaratory judgment complaint seeks a judgment disallowing discharge of his debt, nor can he claim that the evidentiary issues are different from those indicated in the Discharge Memorandum. Dominguez could not depend on the confirmation order as the final step in his bankruptcy, because the judge specifically withheld decision on legal issues raised by the Discharge Memorandum. Thus, Dominguez had every reason to marshal evidence to defend against the Millers' subsequently filed adverse action. 28 Second, Dominguez claims that the Millers' strategic decision not to initiate an adversary proceeding, which they carried out by stipulating at trial that their memorandum was not an objection to the confirmation plan and that it was not intended as a complaint, constitutes a ground for finding that their complaint cannot relate back to their Discharge Memorandum. Although we do not condone the conscious choice of the Millers' attorney to rely on his interpretation of the law rather than protect his clients by filing a complaint, it would serve no purpose to punish the Millers for their lawyer's unwarranted confidence in his strategy. The rules set deadlines, but they also provide that deficient pleadings may suffice if appropriately amended. In this case, the Discharge Memorandum suffices as a complaint, and the relation back doctrine is clearly applicable. Because Dominguez has not relied to his detriment on the Millers' contention that the Discharge Memorandum did not constitute a complaint initiating an adverse action, the Millers cannot be equitably estopped from now arguing that it should be so considered. 29 Accordingly, we affirm the BAP's reversal of the bankruptcy court on this issue.