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USDOL/OALJ Reporter
Toland v. PST Vans, Inc., 93-STA-29 (Sec'y Sept. 7, 1994)




DATE:  September 7, 1994
CASE NO. 93-STA-00029


IN THE MATTER OF

DWIGHT E. TOLAND,

          COMPLAINANT,

     v.

PST VANS, INC.,

          RESPONDENT.


BEFORE:  THE SECRETARY OF LABOR


                  DECISION AND ORDER DISMISSING COMPLAINT

     The Administrative Law Judge (ALJ) recommended dismissal of
this case arising under the employee protection provision of the
Surface Transportation Assistance Act of 1982 (STAA), 49 U.S.C.
app. § 2305 (1988) because any liability of Respondent PST
Vans, Inc. (PST) was discharged by order of the United States
Bankruptcy Court.  I agree, as I explain below.
     I. Proceedings
     Complainant Toland filed this complaint with the Department
of Labor on January 28, 1993, alleging that PST discharged him
because he voiced concerns about the mechanical condition of the
truck he was assigned to drive.  In advance of the scheduled
hearing, PST's counsel advised that PST was under the protection
of the United States Bankruptcy Court for the District of Utah. 
The ALJ entered an order staying this matter pursuant to the
automatic stay provision of the Bankruptcy Act, 11 U.S.C.
§ 362(a), pending the final outcome of the bankruptcy
proceeding.    In February 1994, the Bankruptcy Court issued an
order confirming the debtors' plan of reorganization. [1]   Upon
receipt 

[PAGE 2] of the Court's order, the ALJ ordered the parties to show cause why this complaint should not be dismissed as having been discharged by the Bankruptcy Court's order. Acting pro se, Toland submitted a document stating: "This court should not dismiss this case because it has no legal authority to do so. Plaintiff was not listed at all in the Bankruptcy Court." PST responded that Toland "received notice of [PST's] Chapter 11 bankruptcy case pending in the U.S. Bankruptcy Court for the District of Utah and should have filed a proof of claim against [PST] in said case." Resp. Memo. In Support of Dis. at 4. PST argued that pursuant to 11 U.S.C. § 1141(d), the Bankruptcy Court's confirmation of PST's plan of reorganization discharged Toland's claim against PST, which was a prepetition debt. Id. at 2. Further, PST contended that 11 U.S.C. § 524(a)(2) acts as a permanent injunction against the continuation of an action to collect or recover a discharged debt for which the debtor is personally liable. Id. II. Analysis I agree with the ALJ that Toland was aware of the Bankruptcy Court proceeding because "he participated in telephone conferences ... and was served with various motions and orders" relating to the proceeding. Recommended Decision and Order Dismissing Complaint (R.D. and O.) at 2. PST served Toland with a copy of its July 9, 1993, notice to the ALJ advising of the existence of the bankruptcy proceeding. The ALJ's July 12, 1993, Order Staying Proceeding and Cancelling Hearing, which referred to the bankruptcy proceeding, likewise was served on Toland. The bankruptcy action had commenced only one month earlier, on June 2, 1993. Further, the Bankruptcy Court's Order confirming the debtors' plan of reorganization, which discharged PST's prepetition debts, was not issued until February 17, 1994. I find that pursuant to 11 U.S.C. § 1141(d), the Bankruptcy Court's Order confirming the debtors' plan of reorganization finally discharged any liability of PST in this case arising under the STAA. See Bankruptcy Court's Findings of Fact, Conclusions of Law and Order Confirming Debtors' First Amended Consolidated Plan of Reorganization, at p. 9 par. 6. Accordingly, the complaint in this case is DISMISSED. SO ORDERED. ROBERT B. REICH Secretary of Labor Washington, D.C. [ENDNOTES] [1] In re: PST Vans, Inc., Debtors, Case Nos. 93C- 23033, 93C-23034, and 93C-23035, United States Bankruptcy Court for the District of Utah, Central Division, February 17, 1994, Findings of Fact, Conclusions of Law and Order Confirming Debtors' First Amended Consolidated Plan of Reorganization, Dated Octber 12, 1993, As Modified.



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