Legal Question in Bankruptcy in Tennessee

Can personal injury suit be filed

My 19 year old son was assaulted and left blind in one eye. The incident occurred in a local Denny's restaurant during business hours, assault occurred in the restaurant, it was perpetrated by employee who was acting as manager at the time, and was instigated by $30.00 owed the to the perpetrator by my son. My son was a customer in the restaurant at the time. Filing suit has been held up because corporate franchisee that owns restaurant filed Chapter 7, then changed it to Chapter 11 before suit was filed. They also moved from AZ to TN.

Insurance carrier for the corporation sounds agreeable to discuss settlement but corporation is carrying $150K deductible so until that portion is met insurance cannot do anything.

Can suit be filed while corporation is in Chapter 11 and details how?


Asked on 1/31/02, 4:30 pm

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Can personal injury suit be filed

It can be but the automatic stay must be lifted to proceed. That is done by Motion in the Bankruptcy Court. While the corporation is in bankruptcy, if it is to be the defendant, the statute of limitations is tolled, that is it is extended by the length of time the automatic stay is in effect. Larry Maun 713.266.2560

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Answered on 1/31/02, 6:27 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Can personal injury suit be filed

Short answer -- Yes a "mini-trial" within the bankruptcy case could be initiated against the company.

Under Section 523(a)(6) of the Bankruptcy Code a debt which arises from a "willful and malicious injury" cannot be eliminated ("discharged" is the bankruptcy term)in a Chapter 7 or a Chapter 11. Chapter 11 cases are beyond my area of expertise. A motion would need to be filed and I feel a hearing would be necessary to determine that this injury claim was sufficiently connected to the company AND that the injury was caused by willful and malicious acts. One of my colleagues is an expert in the highly specialized field of Chapter 11 cases. He is based in Dallas but litigates bankruptcy issues throughout the US. Please give me a call if you would like for me to introduce you. ph. (800) 303-0720

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Answered on 1/31/02, 9:37 pm


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