Bankruptcy — notice

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United States Court of Appeals For the Seventh Circuit

Civil

Bankruptcy — notice

Where a creditor’s attorney received notice of a debtor’s bankruptcy, the creditor had constructive notice, even if the attorney never notified his client.

“It is clear from Stilp’s testimony that he had neither terminated his representation of Miller in May 2010 nor did he indicate that he would be closing the case or refusing future representation of Miller. Instead, Miller stated he needed time to consider whether to refile; an action he ultimately said he wished to pursue. Mere weeks elapsed between the time Miller’s federal case against Herman was dismissed and the time Herman filed a bankruptcy petition. Although Stilp was not specifically representing Miller in the bankruptcy case, he was representing Miller in the ongoing claim against Herman related to the bankruptcy and the new action against Pella Corporation regarding the same windows. Under these circumstances, it was reasonable for Herman to believe Stilp was still representing Miller at the time he filed for bankruptcy. These facts led the bankruptcy court to properly hold that Herman ‘established that Mr. Stilp continued to represent Mr. Miller at the time the notice was sent.’ The bankruptcy court’s finding is in accordance with the presented facts and oral testimony and ‘shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the bankruptcy court to judge the credibility of witnesses.’ Fed. Bankr. P. 8013.”

Affirmed.

13-1186 In re Herman

Appeal from the United States District Court for the Northern District of Illinois, Reinhard, J., Bauer, J.