PHAR-MOR, INC. v. COOPERS & LYBRAND

No. 93-3368.

22 F.3d 1228 (1994)

PHAR-MOR, INC., Plaintiff, v. COOPERS & LYBRAND, Defendant. The Official Unsecured Creditor's Committee of Phar-Mor, Inc., Appellants, Ivan Bowen, II, Robert J. Carr, Vernon L. Carson, Merle T. Carson, Robert M. Chase, Stephen M. Ehrlichman, Robert J. Frisby, Ronald Goldberg, Cecile Guthman, Howard D. Hirsh Revocable Trust, Walter Jacobson, Diane Dybsky Jacobson, Robert A. Judelson, Edward L. Lembitz Profit Sharing Plan, Marc Levenstein, Angela Levenstein, Maurice Sporting Goods, Inc., Protective Insurance Company, Robert A. Riesman, Jr., Philip E. Rollhaus, Jr., Jeanette M. Shea Trust, Spiegel, Inc. Supplemental Employee Retirement Plan for the Benefit of John J. Shea, Helen Shire, Jack Shire, Bernard M. Susman Revocable Trust, Glen R. Traylor, Union League Boys & Girls Clubs, Richard E. Weiss, John B. Whitted, Jr., Stein Roe Investment Trust, Olympus Private Placement Fund, L.P., Vencap Hold[ings] [1987] PTE Ltd., Odyssey Partners, L.P., Kemper Total Return Fund, Kemper Growth Fund, Kemper Retirement Fund — Series I, Kemper Retirement Fund — Series II, Kemper Small Capitalization Equity Fund, Kemper Investment Portfolios — Growth Portfolios, Kemper Investment Portfolios — Total Return Portfolio, Lumbermens Mutual Casualty Company, Kemper Financial Services, Inc., New Economy Fund, Anchor Pathway Fund Growth Series, America Variable Insurance Series Growth Fund, Albert H. Bitzer, Jr. Revocable Trust, The Bowen Family Partnership, Inc., Select Equity Fund of the Collective Trust Funds of the Northern Trust Company, Growth Equity Fund-A of the Common Trust Funds of the Northern Trust Company, Steinroe Prime Equities, Andrew K. Block Trust No. 2, David A. Breskin, Burton B. Kaplan, Arthur Charles Nielsen, Jr., Ralph M. Segall Trust, Mitchell Gold-Smith, Allan C. Lichtenberg Trust, Eva F. Lichtenberg, James D. Winship, M.S. Block 1985 Family Trust, Pagtip, Sheet Metal Workers Pension Fund, Intervenors.

United States Court of Appeals, Third Circuit.

Decided April 11, 1994.

Rehearing and Suggestion for Rehearing Denied June 6, 1994.


Attorney(s) appearing for the Case

Abraham Singer (Argued), Pepper, Hamilton & Scheetz, Detroit, MI, for The Official Unsecured Creditors' Committee of Phar-Mor, Inc., appellant.

Paul A. Manion (Argued), James P. Hollihan, Robert J. Waine, Mary-Jo Rebelo, Manion, McDonough & Lucas, Pittsburgh, PA, for Phar-Mor, Inc., appellee.

Kathryn L. Simpson (Argued), Grogan, Graffam, McGinley & Lucchino, P.C., Pittsburgh, PA, for Coopers & Lybrand, appellee.

Arthur T. Susman, Timothy J. Storm, Susman, Saunders & Buehler, Chicago, IL, for intervenors, Plaintiffs in Bowen, et al. v. Shapira, et al.

Bernard D. Marcus, Scott D. Livingston, Marcus & Shapira, Pittsburgh, PA, for amicus curiae, Giant Eagle, Inc. and Giant Eagle of Delaware, Inc.

R. Eric Kennedy, Weisman, Goldberg & Weisman Co., L.P.A., Cleveland, OH, for amicus curiae, Brentwood Originals, Inc., et al.

Before: BECKER and STAPLETON, Circuit Judges, and RESTANI, Judge, U.S. Court of International Trade.


Rehearing and Suggestion for Rehearing In Banc Denied June 6, 1994.***

OPINION OF THE COURT

BECKER, Circuit Judge.

This appeal presents the interesting and important question whether § 1109(b) of the Bankruptcy Code, 11 U.S.C. § 1109(b), which provides that a creditors' committee "may raise and may appear and be heard on any issue in a case [under Chapter 11]," gives a creditors' committee the unconditional...

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