National Environment Waste Corp. v. Stephens, Berg & Lasaster
Opinion
Lead Opinion
Noonan, J.
ORDER
The opinion filed on January 18, 2000 is amended by deleting the partial concurrence and partial dissent on slip op. pages 578-579.
OPINION
National Environmental Waste Corporation and International Rubbish Service, Inc. (collectively Newco) appeal summary judgment against them in favor of the law firm of Stephens, Berg & Lasaster (the Stephens firm). We hold that a state statute of limitations is extended for a corporation in reorganization by virtue of 11 U.S.C. § 108 where recovery of the claim will substantially benefit the creditors of the estate, even though the claim was not explicitly specified in the plan of reorganization. Accordingly we reverse the judgment of the district court.
PROCEEDINGS
On May 3, 1993 Newco filed a voluntary petition for relief under Chapter 11. On June 8, 1994 the bankruptcy court confirmed a plan of reorganization. Article 5.10 of the reorganization plan provided: “The Reorganized Debtor shall retain and may enforce any claims in favor of Debtor ...” Article 7.16 retained the jurisdiction of the bankruptcy court “to recover all assets and property of Debtor’s Chapter 11 estate wherever located.” Article 5.8 restricted the salaries of…