Document: 507 U.S. 380 113 S.Ct. 1489 123 L.Ed.2d 74 PIONEER INVESTMENT SERVICES COMPANY, Petitionerv.BRUNSWICK ASSOCIATES LIMITED PARTNERSHIP et al. No. 91-1695. Argued Nov. 30, 1992. Decided March 24, 1993. Syllabus * As unsecured creditors of petitioner—a company seeking relief under Chapter 11 the Bankruptcy Code—respondents were required to file proofs claim with Court before deadline, or bar date, established by that court. An August 3, 1989, date was included in a "Notice for Meeting Creditors" received from court Mark Berlin, an official respondents. Respondents' attorney provided complete copy case and, when asked, assertedly assured Berlin no had been set. On 29, respondents asked accept their Rule 9006(b)(1), which allows permit late filings where movant's failure comply deadline "was result excusable neglect." The refused, holding party may neglect only if timely perform due circumstances beyond its reasonable control. District remanded case, ordering evaluate respondents' conduct more liberal standard. applied standard and again denied motion, finding several factors—the danger prejudice debtor, length delay potential impact on judicial proceedings, whether creditor acted good faith favored respondents, but within control they should be penalized counsel's mistake. affirmed, Appeals reversed. It found inappropriately error, since about impending deadlines peculiar inconspicuous placement notice creditors' meeting without any indication date's significance left dramatic ambiguity notification would have confused even person experienced bankruptcy. Held: 1. attorney's inadvertent proof can constitute "excusable neglect" meaning 9006(b)(1). Pp. ____. (a) Contrary petitioner's suggestion, Congress plainly contemplated courts permitted caused inadvertence, mistake, carelessness, not just those intervening party's This flexible understanding comports ordinary "neglect." also accords underlying policies bankruptcy rules, entrust broad equitable powers order ensure success debtor's reorganization. In addition, this view is confirmed history present rules strongly supported fact phrase neglect," as used Federal Rules Civil Procedure, understood somewhat "elastic concept." (b) determination what sorts will considered "excusable" one, taking account all relevant circumstances. These include first four factors instant case. However, erred attributing fault counsel. Clients held accountable acts omissions. See, e.g., Link v. Wabash R. Co., 370 626, 82 1386, 8 734. Thus, determining excusable, proper focus upon counsel excusable. 2. was, circumstances, found, lack debtor interest efficient administration, combined counsel, weigh favor permitting tardy claim. culpability it significant outside course cases. Normally, such prominently announced accompanied explanation significance, inconspicuously placed regarding meeting. P. 943 F.2d 673 (CA6 1991), affirmed. [SCJ2Q!]] WHITE, J., delivered opinion Court, REHNQUIST, C.J., BLACKMUN, STEVENS, KENNEDY, JJ., joined. O'CONNOR, filed dissenting opinion, SCALIA, SOUTER, THOMAS, Craig J. Donaldson, Morristown, NJ, petitioner. John A. Lucas, Knoxville, TN, Justice WHITE Court. 1 3003(c) Procedure sets out requirements filing 9 Municipality Reorganization cases.1 3003(c)(3) provides "court shall fix cause shown extend time filed." 9006 general rule governing computation, enlargement, reduction periods prescribed other rules. 9006(b)(1) empowers earlier neglect."2 we are called decide set rule. Finding can, affirm. 2 April 12, petitioner voluntary petition United States Eastern Tennessee. sought Code. Petitioner list 20 largest creditors, including one here. following month, after obtaining extensions statement financial affairs schedules assets liabilities. schedules, amended, listed except Ft. Oglethorpe Associates Limited Partnership contingent, unliquidated, disputed claims; partnership at all. Under § 1111 Code, U.S.C. 1111(a), 3003(c)(2), "bar date," 3 13, day petition, mailed creditors. Along announcement May 5 passage: 4 "You must your scheduled disputed, contingent unlisted you do agree amount. See Sec. & 3003. Bar 1989." App. 29a. read president corporate partners each duly attended 5. retained attorney, Marc Richards, represent them proceedings. stated affidavit he Richards file, court's asserted inquired there claims him urgency Id., 121a. both subsequent June 16, 1989. 6 Respondents failed date. 23, proofs, along motion particular, explained unaware, came experiencing "a major disruption" his professional life withdrawal former law firm July 31, 56a. Because disruption, did access matter until mid-August. Ibid. 7 refused filing. Following precedent Eleventh Circuit, " 'failure duty [its] control.' 124a (quoting re South Atlantic Financial Corp., 767 814, 817 (CA11 1985), cert. sub nom. Biscayne 21 Condominium Associates, Inc. 475 1015, 106 1197, 89 311 (1986)). could complied, ruled appeal, affirmed part reversed part. "respectable authority narrow reading 'excusable neglect' adopted concluded Sixth Circuit follow approach." 157a. Embracing test Ninth instructions against factors, including: ' "(1) granting debtor; (2) administration; (3) whose perform; (4) faith; (5) clients mistake 158a-159a Dix, 95 B.R. 134, 138 (CA9 Bkrptcy. Appellate Panel 1988) (in turn quoting Magouirk, 693 948, 951 1982))). suggested consider "resulted negligence, indifference culpable moving counsel." 159a. remand, so-called Dix motion. Specifically, (1) prejudiced filings; 20-day adverse reason control; that, light Berlin's business sophistication actual knowledge improper penalize 168a-172a. negligent missing "[t]o degree," indifferent it. 172a. weighing these considerations, "attache[d] considerable importance 5," ruling favor, notwithstanding "would render nugatory fixing claims' case." 173a. ruling. 10 agreed limited cases act five "Dix factors" helpful, although necessarily exhaustive, guides. Pioneer Investment Services 673, 677 (1991). however, misapplied fifth factor told none existed, "inappropriately [respondents] errors "it containing incorporated document entitled 'Notice Creditors.' 678. "Such designation," explained, put extensive experience appended end intended final claims." Indeed, based comparison between model Official Form given contained "dramatic ambiguity," well "[e]ven persons bankruptcy." Having determined rather than petitioner, record demonstrated 12 conflict appeals over neglect,"3 granted certiorari, 504 ----, 112 2963, 119 585 (1992), now II 13 There is, course, range possible explanations court-ordered deadline. At spectrum, prevented complying forces control, God unforeseeable human intervention. other, simply choose flout lie miss very reason, aid accident victim discovered way courthouse, misses through miscalculation, negligence. contends correct interpreted require showing suggests exacting enforcement essential Code's goals certainty finality resolving claims. view, filer defeat 14 We think interpretation consonant either language evident purposes First, grants reprieve out-of-time delayed "neglect" "to give little attention respect" matter, or, closer point our purposes, leave undone unattended esp[ecially] carelessness." Webster's New Collegiate Dictionary 791 (1983) (emphasis added). word therefore encompasses simple, faultless omissions commonly, carelessness. Courts properly assume, absent sufficient contrary, intends words enactments carry "their ordinary, contemporary, common meaning." Perrin States, 444 37, 42, 100 311, 314, 62 199 (1979). Hence, empowering "where permitted, appropriate, 15 governs cases.4 rules' differentiation corresponds differing two chapters. Whereas aim liquidation prompt closure distribution estate, reorganization rehabilitating avoiding forfeitures Whiting Pools, Inc., 462 198, 203, 103 2309, 2312-2313, 76 515 (1983). overseeing latter process, entrusted balance interests affected parties, guided overriding goal ensuring NLRB Bildisco Bildisco, 465 513, 527-528, 104 1188, 79 482 (1984). context 9006's allowance entails correspondingly inquiry. 16 confirms view. 9006(b) derived 906(b) governed proceedings Act. Like forerunner 3003(c), establishes cases, 10-401(b), X Act, 11's predecessor. Advisory Committee Notes accompanying make clear 10-401(b) "in accordance equities situation": 17 "If has fixed claim, still enlarge provisions made applicable subdivision. policy accord generally preserve forfeit rights. 102 rejects notion expressed 57n Act six-month period participate distribution. Section 224(4) permits certain fail 204 fixes minimum years rights plan forfeited. approach intentional Senate Report 1916 (75th Cong., 3d Sess., 20, 1938): 18 'Sections 205 insure participation 19 benefits who, inadvertence otherwise, otherwise evidence during pendency proceedings.' "This attitude carried forward dispensing need stock most instances secondly, enlargement particular situation." Note reprinted 13A Moore L. King, Collier Bankruptcy, ¶ 10-401.01, p. 10-401-4 (14th ed. 1977). 22 supports conclusion situations filer. 23 Our use places. patterned 6(b) rules.5 6(b), specified performance elapsed, omission "result neglect."6 anything commonly accepted drafters. surprising, then, applying recognized delays.7 Although ignorance mistakes construing usually neglect, concept"8 strictly movant.9 24 allowing elsewhere Procedure. When counterclaim not, 13(f) up amendment "oversight, justice requires." provision, difficult indeed imagine insists be.10 25 same true 60(b)(1), reopen judgments reasons "mistake, surprise, year judgment. 60(b)(6) goes further, judgment passed "any justifying operation judgment." mutually exclusive, thus who take action seek resorting subsection (6). Liljeberg Health Acquisition 486 847, 863, n. 11, 108 2194, 2205 855 (1988). To justify (6), show "extraordinary circumstances" suggesting delay. ibid.; Ackerman 340 193, 197-200, 71 209, 211-213, L.Ed. 207 (1950); Klapprott 335 601, 613-614, 69 384, 390, 93 266 (1949). If partly blame delay, Klapprott, example, effectively appeal incarceration, ill health, Four default entered him, 60(b) so. Black: 26 "It contended one-year limitation [of ] bars premise aside showed, most, nothing neglect.' And 'neglect' disclosed petition. event avail himself 'any reason' clause 60(b). But allegations extraordinary situation cannot fairly logically classified mere undenied facts reveal far defend . indifference, careless disregard consequences." U.S., 613, S.Ct., 389. 27 Frankfurter, grounds, Klapprott's inability took scope "because subject carries idea negligence merely non-action." 630, 398. 28 least 60(b), encompass attributable structure her supra.11 result, obtain Had here some circumstance find time, inflexibly exclude every instance ignore natural odds analogous contexts.12 B 29 leaves, Rule's requirement "excusable." believe deter parties freely ignoring hopes winning permissive With regard substantial agreement identified Appeals. guideposts "excusable," conclude bottom surrounding omission.13 include, movant, movant faith. F.2d, 677.14 30 aspect Appeals' analysis, disagree. inappropriate reasoning "the ultimate responsibility proof[s] clai[m] rested [respondents'] appeared analysis reasonably policing agent, this, erred. 31 contexts, attorneys. 734 (1962), client suffer consequence dismissal lawsuit because attend pretrial conference. so concluding, "no merit contention unexcused imposes unjust penalty client." 633, 1390. wrote: 32 "Petitioner voluntarily chose representative action, avoid consequences selected agent. Any wholly inconsistent system litigation, deemed bound lawyer-agent 'notice facts, charged attorney.' 633-634, 1390 Smith Ayer, 101 320, 326, 955 (1880)). 33 principle underlay decision Boyle, 469 241, 105 687, 83 622 (1985), tax return. applies equal force requires chosen Consequently, prior III 34 nonetheless. does challenge findings below concerning absence disruption administration posed filings. Nor inclined unsettle factual Goodman Lukens Steel 656, 665, 107 2617, 2623, 96 572 (1987). second amended reorganization, offered litigation underway, takes 168a-169a. 35 assessing weight upheaval practice do, noted, ordinarily significance. "peculiar creditors['] meeting," ambiguity" notification. Ibid.15 say, remiss failing apprehend notice. sure, bad faith, say abused discretion declining showing, unusual form employed 36 For reasons, 37 Affirmed. 38 whom SOUTER THOMAS join, dissenting. 39 Today replaces straightforward commended balancing test. Court's plain unduly complicates task apply it, I respectfully dissent. 40 moves permission having missed "may done met untimely permitted. available unless Bkrtcy.Rule Second, withhold believes forbearance inappropriate; statute forgive states grant discretion." threshold determine allow asking meet resulted neglect; answer yes, then excuse error. 41 Instead examining steps, employs multifactor covering numerous (and perhaps to) faith." Ante, command whenever "equitable" Rather, exercise place. Whether depends nature itself, terms culpability. sufficiently blameless, failure, effect system, relevant. Vertientes, Ltd., 845 57, 60 (CA3 ("The extension reason"); 819 1985) (The therefor others), denied, (1986); see Maressa A.H. Robins 839 220, 221 (CA4 (no exception principles). 42 pays lip service existence ante, ____ ("Rule 'was "), holds question "at one." contrary. 43 Lujan National Wildlife Federation, 497 871, 110 3177, 111 695 (1990), virtually identical 6(b). Rule, "find[s] substantive 897, 2733. Characterizing "obstacle" greatest all," ibid., examined Nowhere discussion mention file. Instead, concentrated exclusively ibid. 44 concedes language; indeed, relies support latter. Yet majority why depart recently Lujan, reads differently. ____, 13. While "define" denying us: opinion's overcome "greatest" "substantive obstacle[s]," might differently, offers affirmative bear states: 45 "Because 'excusable,' omission." 46 my "guideposts" how "neglect 'excusable.' fails them. First remaining portion consult. entirety, inquiry into causation consequences: Unless unavailable. [the Rule] actions actions, parties' positions." 819. Moreover, indicates moment occurred known proposed. authorizes incidents current knowledge. 47 overlooks dispositive guidepost—the dictionary definition That incorporate results appropriate action; turns involved. According Black's Law 566 (6th 1990), is: 48 "[A] steps own inattention, willful process court, unexpected unavoidable hindrance accident, reliance care vigilance promises party. (e.g. Fed.R.Civil 6(b)) authorizing expiration done, neglect', quoted prudent circumstances." 49 Cf. 4A C. Wright Miller, Practice 1165, pp. 480, (2d 1987) ("Excusable [in Fed.Rule Civ.Proc. seems demonstration basis noncompliance. Absent lines, denied"). Of authoritative expositor American law. neglect—supplementing exclusive error emphasis effect—surely indicated. 50 event, quite unnatural term mean variety events equities, Not circularity becomes chooses excuse—but renders critical superfluous. After all, majority's different afforded describe acceptable level culpability, move discretionary once shown. right Rule. convey types neglect—at minimum, highly forgiven, regardless consequences. 51 recognize guidepost. construed "deter 9006(b)(1)." concentrating ought deterred, immediately shifts considerations requiring noncompliance, noncompliance irrelevant. hold undermines deterrence excuses inexcusable. 52 promote. indeterminate, frequently question. Reasonable minds often differ greatly require. prime example. Applying much today, respondent's Then substituted otherwise. evens score two. unnecessarily introduce uncertainty routine like determination. unhesitatingly endorse invites litigants redetermination procedural disputes courts. 53 Direct application 9006(b)(1)'s contrast, straightforward. examine itself ask neglect. did, lower may, discretion, equities. effects failure. 54 That, brings us devotes bulk discussion: qualify points out, disagreed matter. Some 819, cited 3. Others distinguish among Consolidated Freightways Corp. Delaware Larson, 827 916, 919 "qualitative distinction occurs despite efforts diligence") (Fed.Rule App.Proc. 4(a)), nom., Secretary Transp. Pennsylvania, 484 1032, 762, 98 775 resolve dispute Once clarify determination, compel inexcusable 55 expressly degree, "indifference" toward noted client, sophisticated active participant of, aware 171a. clerical minor yielding untoward best efforts; look properly, 56 nonetheless reasons. thought inequitable saddle attorney. today rationale. Creditors." designation, enough date" 678 1991). designate "dramatic[ally] ambigu[ous]" many dates bankruptcy, signals agreement. unorthodox; asserting inadequacy respondent lawyer overlooked "as of" unorthodox finding. notice's somehow led astray. 57 obligated record. commendable display candor, admitted "foul-up" "particularly" own. 72a. Accord, id., 112a ("[T]he foul-up can't lay clients' shoes really probably mine"). blamed appealed sense fairness, arguing "delay occasioned client], 73a. 102(a) ("[U]nder unfair visit sins client"); (Although attorney's, [and] totality [it be] inherently situation"). 58 Perhaps desirable specific actually Given inconceivable unorthodoxy 57a recollection seeing setting deadline); 103a (same). uncertainty, remand findings. Based state make, 59 Respondent's relatively unaggravated He repeatedly warnings. respondent, lawyer, Appeals, produce More important still, explain "indifference." Even accepting cover falls occasion exercised equities; ineligible event. response focuses occurred, litigate application. 14. objection approach; always facts. law's easier certain. A "susceptible litigation," balancing. such, overturned review clearly erroneous. fact, one—neither nor reviewed case—has others adequately 61 succeeds circumventing instead technique doubt prove instructive anyone appealing future, highlights indeterminacy test: simple shift another—here, —shifts result. precludes slippery tactic. threshold, focus: missed. assertion, singular thought, saying. congressional command, create unintended difficulties process. fear, exception. single-step, multifactor, contrary sensible notions economy. Its consistent unlikely unproductive recourse appeal. Such especially unfortunate entity afford waste resources litigation; dollar spent lawyers never see. contemplate action. barred record, inexcusable; compelling, propel hurdle. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. part, provides: "(c) Filing Proof Claim. Who File. indenture trustee subdivision (c)(3) "(2) Must equity security holder unliquidated rule; treated respect voting "(3) Time Filing. filed. Notwithstanding extent conditions 3002(c)(2), (c)(3), (c)(4)." "(b) Enlargement. General. Except paragraphs subdivision, allowed thereunder enlarged request originally extended previous Enlargement Permitted. 1007(d), 1017(b)(3), 2003(a) (d), 7052, 9023, 9024. Enlargment Limited. 1006(b)(2), 1017(e), 3002(c), 4003(b), 4004(a), 4007(c), 8002, 9033, rules." Fourth, Seventh, Eighth, Circuits taken Davis, 936 771, 774 1991); Danielson, 981 296, 298 (CA7 1992); Hanson Bank Dakota, N.A., 828 1310, 1314-1315 (CA8 1987); Analytical Systems, 933 939, 942 Tenth similar Centric 901 1514, 1517-1518, Trustees Centennial State Carpenters Pension Trust Fund 498 852, 145, (1990). similarly divided interpretations 4(a)(5) see, 650 Park Ave. McRae, 836 764, (CA2 1988); Pratt McCarthy, 850 590, 592 1988), while 916 1987), (1988); Lorenzen Employees Retirement Plan Sperry-Hutchinson 896 228, 232-233 1990). time-computation -extension 9006, 6, excepted. Subsections (b)(2) (b)(3) enumerate excluded One excepted 9006(b)(3) 3002(c). 9006(b)(3); Coastal Alaska Lines, 920 1428, 1432 By which, earlier, govern permissibility bankruptcies. 9006(b). order, 50(b) (c)(2), 52(b), 59(b), (d) (e), 74(a), them." Borromeo, 945 750, 753-754 Hill Marshall, 86-3987, 1988 WL 117163, *2, U.S.App. LEXIS 14742, *4 (CA6, 4, Dominic Hess Oil V.I. 841 517 Sony Elm Electronics, 800 317, 319 1986); ex rel. Robinson Assn. Columbia, U.S.App.D.C. 185, 186, 190 664, 665 (1951). Hewlett-Packard Co. Olympus 931 1551, 1552-1553 (CA Fed.1991). 479 1987). 45(b) Criminal 9006(b), modeled Roberts, 978 17, 21-24 (CA1 Warren 160, 163, 358 527, 530 (1965); Calland 323 405, 407-408 1963). 13(f), looked, inter alia, claimant, opposing York Petroleum Ashland Oil, 757 288, 291 (Temp.Ct.Emergency App.1985); Gaines Farese, 87-5567, 1990 153937, *3, 18086, *9 Oct. 1990); Barrett Banknote 1992-2 Trade Cases 69,956, 1992 232055 (SDNY Technographics, Mercer 142 F.R.D. 429, 430 (MD Pa.1992). 7013 contains counterclaims brought possession. similar, explicit, dichotomy Second appeals. 'upon .' 15(2), U.S.C.C.A., Pyramid Motor Ispass, 330 695, 703, 10, 67 954, 958, 91 1184 (1947). obviously controlling suggest urged natural. 245, 690, (1985) ("neglect" returns "impl[ies] carelessness"). dissent discerns further post, agree. district abuse grounds 897-898, 3193. define judges full "sufficiently blameless" formulation bring needed clarity save resources. narrowing making eliminate least, appears willing draw line partial deadlines, valuable stake susceptible litigation. reliable means eliminating "indeterminacy" finds troubling adopt bright-line sort embraced erecting rigid barrier degree suggested, construction irreconcilable assigning Faced choice Dictionary, adhere former. commentator warned deficiency method here: "Prior adoption close receipt chapter sent discouraged. conflicts giving rise ambush unwitting Since notorious boilerplate xeroxed distributed wise double check Aaron, Fundamentals 8.02[7], 8-21 (rev.

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