[CLBS] Creditor's attorneys service problem?

[D. Blair Clark]

Listmates-In a dialogue with Laura Burri today, and prior ones with Ace Van
Patten and several others recently, there's a problem that needs resolved.
I'm sending a copy of this to Sheila also since maybe the Rules Committee
needs to weigh in.  

 

I'm doing several closings now on chapter 11 plans for individuals that have
paid out and their plan period is up.  When we did the case originally back
in 2010 (or whenever) there were creditors such as First Horizon and Metlife
who were subsequently bought out or otherwise have gone away.  The
attorneys-like Laura-filed for stay relief or filed their client's proof of
claim, and are therefore attorney of record in the case.  But their client
is now gone.  The Debtor's counsel still has to send out notice to the
clients, and we also serve (usually by ECF) the attorney in the case.  The
attorney says that they no longer represent the client, or the client has
departed the scene, etc., and please don't send them to me.  BUT they've
never withdrawn, so I read the rule as saying that they're still counsel of
record and can still be served for the client.  This is an uncomfortable
situation for BOTH sides.  The record is silent on what happened to the
creditor-there's nothing that shows they've been bought out or ceased
operations-so the "last known address" we have for them is the attorney who
doesn't want the notice.  

 

What to do?  I think this is going to come up more frequently as these plans
come due for closing.  Your thoughts?

 

D. Blair Clark

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