Memorandum of Decision Re: Capacity to Sue

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Decisions
IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re NANCY MARIE CHAFFIN,                                                                           No. 97-10868        Debtor. ___________________________/ HEUNG TOW KEE, et al.,        Plaintiffs,    v.                                                                                                                         A.P. No. 97-1151 NANCY MARIE CHAFFIN,        Defendant. ______________________________/
Memorandum
     One of the plaintiffs in this action, WA Investment Group, is a California corporation. When the complaint was filed, it was not in good standing due to failure to pay its taxes. It did not take care of this problem until after the last day to file this action pursuant to FRBP 4007(c). The defendant debtor seeks dismissal of this plaintiff's claims.      Pursuant to FRBP 7017, a plaintiff's capacity to sue is governed by state law. Under California law, revival of a corporation after the running of the statute of limitations does not revive a complaint and make it timely. American Alternative Energy Partners II v. Windridge, Inc., 42 Cal.App.4th 551, 563 (1996).      The time limit of FRBP 4007(c) is not a statute of limitations, but it is the equivalent of one. In re Hill, 811 F.2d 484, 487 (9th Cir.1987); In re Burns, 102 B.R. 750, 752 (9th Cir.BAP 1989); In re Santos, 112 B.R. 1001, 1004-5 (9th Cir.BAP 1990). Most significantly, the failure of a plaintiff to file by the Rule 4007(c) deadline is an affirmative defense which can be raised by the debtor. In re Santos, supra, at 1008. Revival of a suspended corporation is without prejudice to any defense which has accrued by reason of the original suspension. American Alternative Energy Partners II v. Windridge, Inc., supra.      Since revival is without prejudice to accrued defenses, and since WA Investment Group was not revived before the last day to file timely dischargeability actions, the debtor's motion to dismiss the claims of that corporation will be granted. The case will proceed to trial as to the remaining plaintiffs. Counsel for the debtor shall submit an appropriate form of order.
Dated: September 4, 1997                                                                   _______________________                                                                                                                  Alan Jaroslovsky                                                                                                                   U.S. Bankruptcy