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The debtor, Blue Diamond Coal Company, filed for Chapter 11 bankruptcy. Subsequently, the Kentucky Workers' Compensation Board revoked its Certificate of Self Insurance without proper notice or hearing, citing the bankruptcy filing and cessation of claims payments. The debtor then sued the Board and its members, alleging violations of federal bankruptcy law (discrimination and automatic stay), denial of due process under 42 U.S.C.A. § 1983, and seeking to avoid the revocation as an unauthorized post-petition transfer. The bankruptcy court denied the defendants' motions to dismiss for the claims related to bankruptcy law violations (Counts I, II, and IV), finding sufficient factual allegations. However, the court granted dismissal for the due process claim (Count III), ruling that adequate post-deprivation state remedies were available, which precluded a federal claim under § 1983.
Blue Diamond Coal Co. v. Angelucci (In Re Blue Diamond Coal Co.) is a workers' compensation case decided in United States Bankruptcy Court, E.D. Tennessee. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in United States Bankruptcy Court, E.D. Tennessee.
Full Decision Text1 Pages
The debtor, Blue Diamond Coal Company, filed for Chapter 11 bankruptcy. Subsequently, the Kentucky Workers' Compensation Board revoked its Certificate of Self Insurance without proper notice or hearing, citing the bankruptcy filing and cessation of claims payments. The debtor then sued the Board and its members, alleging violations of federal bankruptcy law (discrimination and automatic stay), denial of due process under 42 U.S.C.A. § 1983, and seeking to avoid the revocation as an unauthorized post-petition transfer. The bankruptcy court denied the defendants' motions to dismiss for the claims related to bankruptcy law violations (Counts I, II, and IV), finding sufficient factual allegations. However, the court granted dismissal for the due process claim (Count III), ruling that adequate post-deprivation state remedies were available, which precluded a federal claim under § 1983.
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