Judge Robert Sweet
In connection with the chapter 11 cases of U.S. Energy Biogas Corp. (USEB) and its subsidiaries (collectively USEB Debtors) Illinois’ Department of Revenue (IDOR) sought certain tax returns. Granting the USEB Debtors’ motion to set a bar date for the filing of administrative expenses payment requests (Bar Date Motion) on Feb. 16, 2011, bankruptcy court set March 25, 2012, as the deadline for such claims (Bar Date). Although the Bar Date Motion was never served on IDOR, the Bar Date Order was sent to it on Feb. 17. Bankruptcy court’s May 18, 2012, order dismissed the chapter 11 cases based on IDOR’s failure to timely file an administrative claim. District court upheld the May 8, 2012, dismissal order and an Aug. 6, order denying IDOR relief from the Bar Date Order Rule 60(b) on the ground the Bar Date Order was void. Bankruptcy court correctly held IDOR’s Rule 60(b) motion beyond the applicable one year limitation period. There was no due process violation. IDOR received the Bar Date Order the day after its entry, 36 days prior to the Bar Date. IDOR did not appeal the Bar Date Order until it filed its Rule 60(b) motion more than 15 months after the Bar Date Order’s entry. Despite ample time to appeal, IDOR “slept on its rights.”
