U.S. Court of Appeals for the Second Circuit
Anti-trust — Discharged Claim — Due Process
DPWN Holdings (USA) Incorporated v. United Airlines, Inc.
Judges Newman, Pooler and Livingston
Background: At issue is an order denying a motion to dismiss an antitrust price-fixing claim. The question is whether the plaintiff had sufficient notice of the availability of the claim against a Chapter 11 debtor to satisfy due process requirements and render the claim discharged.
Ruling: The Second Circuit held that the district court applied an incorrect standard in accepting as true the plaintiff’s allegation that it was not aware of, or with due diligence could not have become aware of, sufficient facts to plead an antitrust claim that would survive a motion to dismiss in the context of a bankruptcy proceeding. The Second Circuit remanded for further development of the record.
Charles A. Rothfeld of Mayer Brown for the appellants; J. Peter Coll Jr. of Orrick, Herrington & Sutcliffe for the appellee