NEGLIGENCE CLAIM BANKRUPTED

In February 2001, Denise Barranco filed bankruptcy. A few months later, she was supposedly injured as a result of Cabrini Medical Center's negligence.

In May 2001, the Bankruptcy Court issued an order of discharge, and two months later her estate was fully administered. But, apparently, Barranco never advised the Bankruptcy Court of the existence of a claim against the hospital.

In March of 2002, when Barranco filed a medical malpractice suit against the hospital, the New York County Supreme Court granted the Center's request to dismiss the matter for "lack of standing."

On appeal, the Appellate Division, First Department, agreed Barranco's dispute was properly dismissed because of her failure to schedule -- or list -- the claim as an "asset" in her bankruptcy proceeding. The fact the claim arose after she had sought bankruptcy relief didn't excuse the omission. (According to the AD1's interpretation of the Bankruptcy Code, such claims become the property of a debtor's estate while that kind of proceeding is pending.)

Barranco's omission bankrupted her recovery of a nice chunk of change.

To download a copy of the Appellate Division's decision, please use this link: Barranco v. Cabrini Medical Center