Skip to main content

§ 503

Ideal Aerosmith Inc. v. Carco Elecs. (In re Carco Elecs.)

Ruling
Administrative expense was denied since claimant did not resume debtor's closed operations for benefit of estate.
Procedural posture

In a chapter 11 matter, movant claimant, pursuant to 11 U.S.C. § 503(b)(1)(A), sought an allowed administrative expense in the amount of $455,708. Respondent was debtor. Debtor and its related finance entity objected to the motion.

ABI Membership is required to access the full summary of Ideal Aerosmith Inc. v. Carco Elecs. (In re Carco Elecs.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on July 25, 2006 , LexisNexis #0806-085

Mazda Am. Credit v. Brown (In re Brown)

Ruling
Court denied creditor's administrative expense claim for excess mileage on leased vehicle since creditor did not show vehicle use preserved or benefitted debtors'estate.
Procedural posture

Pursuant to 11 U.S.C. § 503(a), creditor filed a motion for payment of an administrative expense for damages allegedly arising from the breach of a lease of a pickup truck that the creditor contended that the debtors assumed in their chapter 13 case. The debtors disputed that any such damages should be allowed as an administrative expense.

ABI Membership is required to access the full summary of Mazda Am. Credit v. Brown (In re Brown) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on July 07, 2006 , LexisNexis #0806-053

In re Westerlund

Ruling
Application for allowance of administrative claim was denied since debtors failed to show alleged "extraordinary moving expenses"were actual and necessary costs of preserving estate.
Procedural posture

The debtors filed an application for allowance of a claim as an administrative expense pursuant to 11 U.S.C. §§ 503(b) and 507(a)(1). The debtors asserted that they were entitled to an administrative expense claim for the payment of expenses associated with the sale of their home during the course of the case. The chapter 7 trustee filed an objection.

ABI Membership is required to access the full summary of In re Westerlund Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on June 21, 2006 , LexisNexis #0806-022

Gorski v. Eisen (In re Henricks Commerce Park LLC)

Ruling
Panel affirmed decision to deny attorneys'fees as administrative expenses since fees were, in effect, services for debtor.
Procedural posture

Appellant, the equity security holder of the debtor, appealed from a decision of the Bankruptcy Court for the Northern District of Ohio that disallowed as an administrative expense under 11 U.S.C. § 503(b)(3)(D) and (4) the professional fees of the equity security holder's attorney on the basis that the attorney's services made a substantial contribution to the debtor's chapter 11 case.

ABI Membership is required to access the full summary of Gorski v. Eisen (In re Henricks Commerce Park LLC) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
opinion summary, case decided on June 15, 2006 , LexisNexis #0706-015

In re Balt. Marine Indus.

Ruling
Motion for allowance of administrative expense was denied only because claim was not timely filed not because claim did not qualify for administrative priority under section 503(b).
Procedural posture

Debtor filed a chapter 11 bankruptcy petition. The bankruptcy court confirmed the chapter 11 plan and appointed a liquidating agent with authority to distribute the sale proceeds to creditors. Movant county then sought allowance and payment of an administrative expense claim for unpaid taxes against the proceeds of sale of all of the chapter 11 debtor's assets. The liquidating agent objected.

ABI Membership is required to access the full summary of In re Balt. Marine Indus. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on June 08, 2006 , LexisNexis #0706-055

In re HNRC Dissolution Co.

Ruling
Administrative expense application was denied since applicant insurer filed application after plan confirmation.
Procedural posture

Applicant insurer filed an application for allowance of administrative expenses pursuant to 11 U.S.C. § 503. Objector purchaser of the former debtors'assets objected to the application.

ABI Membership is required to access the full summary of In re HNRC Dissolution Co. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on May 30, 2006 , LexisNexis #0606-083

In re FF Holdings Corp.

Ruling
Investment fund was granted application for allowance of expenses since the fund provided a substantial contribution to debtors'estate and creditors.
Procedural posture

Investment fund brought before the court an application for allowance of expenses from debtors pursuant to 11 U.S.C. § 503(b)(3) and (4). Debtors did not oppose the fund's application; however, the trustee filed an objection.

ABI Membership is required to access the full summary of In re FF Holdings Corp. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on May 09, 2006 , LexisNexis #0606-015

Caradon Doors & Windows Inc. v. Eagle-Picher Industries Inc.(In re Eagle-Picher Indus.)

Ruling
Reorganization plan did not discharge manufacturer's claim since the plan permitted certain administrative expense claims to be filed after the plan confirmation and the plan's definition of recoverable administrative expense claims covered the claims rai
Procedural posture

Appellee manufacturer was named a defendant in a patent infringement case along with appellant debtor. The bankruptcy court agreed with the debtor that the patent infringement claim could not proceed because the confirmation of the 1996 reorganization plan discharged the manufacturer's claim, but the District Court for the Southern District of Ohio disagreed and reversed the bankruptcy court's decision.

ABI Membership is required to access the full summary of Caradon Doors & Windows Inc. v. Eagle-Picher Industries Inc.(In re Eagle-Picher Indus.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
opinion summary, case decided on May 05, 2006 , LexisNexis #0506-119

In re Bernard Techs. Inc.

Ruling
Debtor's CEO did not meet burden of establishing entitlement to administrative expense claim.
Procedural posture

The debtor's chief executive officer ("CEO") filed a request for allowance of an administrative expense pursuant to 11 U.S.C. § 503(b). Both the U.S. trustee and the chapter 7 trustee opposed the request.

ABI Membership is required to access the full summary of In re Bernard Techs. Inc. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on April 13, 2006 , LexisNexis #0806-052

In re Yeatts Contract of Va. Inc.

Ruling
Creditors were granted attorneys'fees and costs award for services that benefitted estate but were not granted fees related to motions for relief from stay.
Procedural posture

Pursuant to 11 U.S.C. § 503(b)(3)(A) and (b)(4), petitioner creditors sought an award of attorneys'fees and costs for filing the involuntary chapter 7 bankruptcy petition against the debtor. Respondent debtor's principal and trustee opposed the award of attorneys'fees.

ABI Membership is required to access the full summary of In re Yeatts Contract of Va. Inc. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on April 12, 2006 , LexisNexis #0706-014