[CLBS] Q's re: out-of-state business's in-state actions, PI case, and subsequent BK proceedings

[William J. O'Connor]

I have a lawyer/friend who has a personal injury case and who does not practice bankruptcy law.  He filed a complaint on behalf of his client and the client’s spouse against a Colorado Corporation, two LLC’s (Idaho, I believe), and three individuals, one of whom is the registered agent for the defendant Colorado corporation.  The defendant Colorado corporation was constructing a building in Idaho, but it did not register with the Idaho Secretary of State nor did it obtain an Idaho workers’ compensation insurance policy.    One or more defendants later removed the building and hauled it back to Colorado.  The defendant individual/registered agent for the Colorado corporation filed a Chapter 11 bankruptcy in Colorado after the Idaho cause of action arose.  The defendant/individual registered agent’s lawyer filed a “Notice of Filing Bankruptcy” in the Idaho PI case regarding the named individual only, not alleging in any way that any of the businesses or other defendants named in the case were protected from further proceedings pursuant to the automatic stay under 11 U.S.C. Section 362(a).  

As an additional fact, a different business owned by the defendant/registered agent for the Colorado Corp. filed Chapter 11 in Colorado.  No notice was provided to the Plaintiffs, via their lawyer or otherwise, that any of the named defendant Idaho businesses were part of, or otherwise affiliated with, the business entity that filed Chapter 11 in Colorado.  

Both bankruptcies are in Colorado. For purposes of the PI case, the defendants were constructing a building in which my friend's client was injured.

Questions:  

1.  Can a Proof of Claim be filed with the bankruptcy court in Colorado when the amount of the claim is unknown?

2.  Is there anything preventing the Plaintiffs and their lawyer from proceeding against the named defendant corporation?  My understanding is that he is not protected under the automatic stay in his registered agent capacity; is that correct?    

3.  The defendant corporation has insurance.  Is there any way to get to the insurance company directly or is this case consistent with Idaho law that provides for the defendant to seek indemnification, so the Plaintiffs must go through the defendant corporation to get to any insurance proceeds?  

4.  Does anyone know of any remedies that might be available to the plaintiffs because the Colorado corporation seems that it didn’t act pursuant to Idaho law by working here without registering with the State of Idaho in any capacity?

Thanks in advance.

> William J. O'Connor
> O'Connor Law, PLLC
> 355 West Myrtle Street 
> Suite 100
> Boise, ID 83702
> 
> Office:  208-344-5095
> Fax: 208-424-3100