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Chase Manhattan Bank v. Rockefeller Center Properties, Rcp Associates

Citation: 46 F. App'x 47Docket: Docket No. 02-5008

Court: Court of Appeals for the Second Circuit; September 19, 2002; Federal Appellate Court

Narrative Opinion Summary

The case involves JPMorgan Chase Bank's (Chase) attempt to recover alleged overcharges from Rockefeller Center Properties and RCP Associates (Debtors) under several lease agreements from 1989 to 1993. The Bankruptcy Court granted partial summary judgment in favor of the Debtors, finding Chase's claims barred by the doctrine of account stated due to Chase's failure to timely object to the Escalation Statements. Chase's claim was also alternatively barred by estoppel in pais, although the district court disagreed with this finding. The Debtors filed for bankruptcy in 1995, and Chase submitted a Proof of Claim for overcharges, which lacked specifics. The court found Chase's objections to the Escalation Statements were untimely, thus barring the claims under account stated. The Bankruptcy Court's denial of Chase's request for further discovery was upheld, as the claims were deemed speculative. The district court affirmed the findings of the Bankruptcy Court regarding account stated and discovery but reversed the estoppel in pais ruling. Ultimately, Chase's claims for the years 1994 through mid-1996 were separated from this matter.

Legal Issues Addressed

Discovery in Bankruptcy Proceedings

Application: Chase's request for additional discovery on rent calculations was denied as the court found the claims speculative and insufficient to warrant further investigation.

Reasoning: Additionally, Chase's request for further discovery related to Additional Rent calculations was denied, as the court found Chase's claims speculative.

Doctrine of Account Stated

Application: The court ruled that Chase's claim was barred because it failed to object to the account statements within a reasonable time, thus making the accounts binding.

Reasoning: The bankruptcy court granted Debtors' motion for partial summary judgment for lease years 1989-1993, ruling that Chase's claim was barred by the doctrine of account stated, insufficient evidence was provided to contest the account, and alternative claims were barred by estoppel in pais.

Estoppel in Pais

Application: While the Bankruptcy Court found Chase's claims barred by estoppel in pais due to untimely objections, the district court found error in this conclusion.

Reasoning: Additionally, the Bankruptcy Court held that Chase's claim was alternatively barred by estoppel in pais due to its failure to timely object to the alleged overcharges, although the district court found error in this aspect.

Requirement of Timely Objection in Account Stated

Application: Chase's delay in challenging the Escalation Statements for the years in question led the court to determine that the account was stated.

Reasoning: The district court upheld the bankruptcy court's finding that an account was stated based on the 1989-1993 Escalation Statements, noting that Chase delayed too long in challenging them.

Summary Judgment Standards

Application: The court applied the standards of Bankruptcy Court Rule 7056 and Federal Rules of Civil Procedure to grant partial summary judgment for the Debtors.

Reasoning: The appellate review is plenary, evaluating factual findings for clear error and legal conclusions de novo, with summary judgment standards applied as per Bankruptcy Court Rule 7056 and Federal Rules of Civil Procedure.