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Trial judge errs in dismissing malpractice claim after doctor's insurer's bankruptcy claim

The Estate of Samuel Alexander sued Trillium Hospital and Dr. Ramana Chennubholta, arguing that a misdiagnosis in the Emergency Room resulted in Alexander's death from pancreatitis.  Not long before trial, the doctor's insurer was declared insolvent and filed bankruptcy.  The trial court responded to the automatic bankruptcy stay by treating the case as "administratively closed"  and did not re-set the case for trial when the bankruptcy was closed.

Some 14 months later, the Plaintiff filed a petition to "reinstate" the case, however, the court agreed with the Defendant's attorneys that the Plaintiff Estate had waited too long after the bankruptcy closed and instead dismissed the claim entirely.  The appellate court noted that it was not the Estate's fault that the matter was mis-handled administratively by the Court and ordered the case reinstated for trial.
Thompson O’Neil, P.C.
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Traverse City, Michigan 49684
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