Buchanan v. Pilgrim's Pride Corporation
1:10-cv-00242
E.D. Tenn.Jul 25, 2011Background
- Buchanan sued Pilgrim’s Pride in the Eastern District of Tennessee; defendant moved for judicial notice and to dismiss on Aug 30, 2010.
- Court allowed judicial notice of related bankruptcy filings and treated the motion as a dismissal rather than a summary judgment motion.
- Iqbal and Twombly guide dismissal standards; plausibility required, not mere possible misconduct.
- Pilgrim’s Pride filed a Chapter 11 petition in the Northern District of Texas on Dec 1, 2008; plan confirmed Dec 10, 2009; effective Dec 28, 2009.
- Buchanan’s claim arose by July 23, 2009; he filed suit July 22, 2010; no proof showing nondischargeability; pre-petition debts discharged under the plan.
- Thus, the case was dismissed with prejudice and a separate judgment would be entered.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court may take judicial notice of bankruptcy proceedings | Buchanan argues against considering bankruptcy filings | Pilgrim’s Pride contends court may take judicial notice of public records | Yes; court may take judicial notice of related bankruptcy proceedings |
| Whether 12(b)(6) dismissal is proper given the bankruptcy context | Buchanan claims claims plausibly stated | Pilgrim’s Pride argues dismissal proper under Iqbal/Twombly | Dismissal granted under 12(b)(6) without converting to summary judgment |
| Whether pre-petition claims are discharged under Chapter 11 plan | Buchanan contends claim may survive discharge | Pilgrim’s Pride demonstrates discharge of pre-petition claims | Pre-petition claims discharged by Confirmed Plan; not exempt nondischargeable |
| Whether Buchanan's claim was nondischargeable | Buchanan asserts nondischargeability of his claim | Pilgrim’s Pride asserts no nondischargeability showing | No evidence of nondischargeability; claims dismissed with prejudice |
Key Cases Cited
- Rodic v. Thistledown Racing Club, Inc., 615 F.2d 736 (6th Cir. 1980) (courts may take judicial notice of proceedings in other courts of record)
- Granader v. Public Bank, 417 F.2d 75 (6th Cir. 1969) (support for judicial notice of public records)
- J.P. Silverton Indus. L.P. v. Sohm, 243 F. App'x 82 (6th Cir. 2007) (public records may be considered without converting to summary judgment)
- Jackson v. City of Columbus, 194 F.3d 737 (6th Cir. 1999) (cited with respect to judicial notice/public records)
- Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009) (plausibility pleading standard; factual allegations required)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must contain plausible claims)
- Ass’n of Cleveland Fire Fighters v. City of Cleveland, Ohio, 502 F.3d 545 (6th Cir. 2007) (requirements to state a viable claim)