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Sprinkle v. Appalachian Power Co. (In re Sprinkle) (Case No. 04-01592; A.P. No. 04-00098) 10/26/2004

The Defendant seeks an enlargement of time to file its Notice of Removal under Bankruptcy Rule 9006(b), and contemporaneously filed a Notice of Removal.  There was a pending state court action, initiated by the Plaintiff/Debtors at the time the Debtors filed their bankruptcy petition.  Since the Defendant was not a creditor of the Debtors, it did not receive notice of the bankruptcy filing.  The Defendant learned of the bankruptcy petition through its own investigations, past the filing deadlines of Rule 9027(a).  Accordingly, the Defendant filed its Motion to Extend Time contemporaneously with its Notice of Removal.  The Court analyzed the four factors enumerated by Pioneeer Inv. Servs., Co. v. Brunswick Assocs. Ltd., 507 U.S. 380 (1993), in determining whether to grant the motion to extend time on account of "excusable neglect."  The Court denied the Defendant’s Motion to Extend Time, finding that it would be more prejudicial to the Debtors to allow the state court action to be removed because of the delay it would create in the resolution of that litigation.

Tuesday, October 26, 2004
Notice and Opportunity