Linn Operating, Inc. v. Oklahoma State Treasurer

The Fifth Circuit reversed the district court's holding that the bankruptcy court erred in dismissing a post-confirmation attempt by the Oklahoma State Treasurer to obtain the right to unclaimed royalty payments owed by the oil and gas debtor. The court held that res judicata barred the claim because the Treasurer sat on its rights during the entire Chapter 11 process. In this case, the Treasurer failed to participate in the bankruptcy case and object to or appeal the plan's disposition of the Oklahoma unclaimed property in the normal course. Accordingly, the court reinstated the bankruptcy court's dismissal of the Treasurer's case. View "Linn Operating, Inc. v. Oklahoma State Treasurer" on Justia Law