Federal Circuits, 8th Cir. (March 07, 1996)
Docket number: 95-2413WMKC
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U.S. Code - Title 11: Bankruptcy - 11 USC 101 - Sec. 101. Definitions
U.S. Code - Title 11: Bankruptcy - 11 USC 1141 - Sec. 1141. Effect of confirmation
US Code - Title 41: Public Contracts - 41 USC 605 - Sec. 605. Decision by contracting officer
US Code - Title 42: The Public Health and Welfare - 42 USC 12117 - Sec. 12117. Enforcement
US Code - Title 42: The Public Health and Welfare - 42 USC 12101 - Sec. 12101. Findings and purpose
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Appeal from the United States District Court for the Western District of Missouri.
Jerry Kenter, Kansas City, MO, argued. John B. Boyd appeared on the brief, for appellant.Scott C. Hecht, Kansas City, MO, argued. Matthew Verschelden appeared on the brief, for appellee.Before LOKEN, REAVLEY* and HANSEN, Circuit Judges.PER CURIAM.The question in this appeal is whether an employee's claim of discriminatory termination under the Americans with Disabilities Act (ADA)1 was discharged in bankruptcy, given that the employer's Chapter 11 plan was confirmed after the employee was terminated but before he received his right to sue letter from the administrative agency investigating his allegations. The district court2 concluded that, for the purposes of the bankruptcy code, the employee's claim arose before confirmation. Because all claims arising before confirmation are discharged, the court dismissed the employee's suit alleging discriminatory termination. The employee now appeals, reasserting that he had no claim until he received his right to sue letter. We affirm.I.On January 31, 1992, appellee Trans World Airlines (TWA) filed a Voluntary Petition for Reorganization in Bankruptcy. Some nine months later, on September 18, 1992, TWA terminated appellant McSherry's employment as a pilot. Shortly before his termination, McSherry filed a charge of discrimination with the Office of Federal Contract Compliance, complaining that his impending termination constituted disability discrimination under the ADA.3 On August 12, 1993, TWA's Chapter 11 bankruptcy plan was confirmed. The plan required all claims arising before confirmation to be filed with the bankruptcy court by December 3, 1993. McSherry did not file a proof of claim with the bankruptcy court by that date. The Department of Labor completed its investigations in the fall of 1993 and undertook conciliation between TWA and McSherry. Shortly after December 6, 1993, TWA offered to settle all of McSherry's claims, including his claim of discriminatory termination. McSherry refused the offer. On April 12, 1994, McSherry received his right to sue letter from the Department of Labor, and he filed suit in Federal District Court on July 1, 1994. The district court granted TWA's motion to dismiss, reasoning that McSherry's claim was discharged in bankruptcy because it arose before confirmation of the plan.II.In considering a motion to dismiss, we accept as true all factual allegations in the complaint. Leatherman v. Tarrant County Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 163-65, 113 S.Ct. 1160, 1161, 122 L.Ed.2d 517 (1993) (citations omitted). The motion will be granted only if no set of facts would entitle the plaintiff to relief. Conley v. Gibson, 355 U.S. 41, 45-47, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957).With exceptions not relevant here, confirmation of a debtor's bankruptcy plan discharges debts arising prior to the date of confirmation. 11 U.S.C. 1141(d). The Bankruptcy Code (Code) defines "debt" as "liability on a claim." 11 U.S.C. 101(12). "Claim" is defined as a "right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured." 11 U.S.C. 101(5)(A).Because the plan was confirmed on August 12, 1993, plaintiff's claim was discharged on that date unless it arose after confirmation. The central issue in this dispute, therefore, is whether McSherry's cause of action fell within the definition of claim in § 101(5)(A) on August 12, 1993.It is clear that the definition of "claim," as stated in the Code, is broad enough to encompass an obligation on which a civil action would be premature because jurisdictional prerequisites have not been met. Both the allegedly unlawful actions and the harm occurred on the date of termination, and McSherry's right to redress that wrong existed on that date. While lack of a right to sue letter may have left his claim unmatured or contingent on that date, § 105(A) specifically includes such claims within its definition.McSherry relies primarily on a Third Circuit case, Avellino & Bienes v. M. Frenville Co. (In re M. Frenville Co.), 744 F.2d 332 (3d Cir.1984), cert. denied,Try vLex for FREE for 3 days
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