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§ 503

In re Hayes Lemmerz Intl Inc.

Mar
28
2006
Ruling
Court granted lessor part of its administrative expense application since lessor showed damages within the allowed time period.
Procedural posture

A chapter 11 matter was before the court for decision following trial and briefing on the applications of a lessor for allowance and payment of an administrative expense for damages allegedly sustained to machines it leased to debtor.

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opinion summary, case decided on March 28, 2006 , LexisNexis #0406-085
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Estate of Centennial Communs. v. Longtain (In re Centennial Communs.)

Feb
15
2006
Ruling
Court affirmed an order that allowed a creditor's claim for a super-priority administrative expense since the amounts the creditor advanced were shown to be for the estate's benefit.
Procedural posture

Appellant debtor sought review of a decision of the bankruptcy court that denied its motion for reconsideration of an earlier order that allowed a creditor's claim for a super- priority administrative expense and allowed the creditor to share in a pro rata distribution for the remainder of her claim, which included a loan to the debtor or its officers.

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opinion summary, case decided on February 15, 2006 , LexisNexis #0406-013
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In re Main Line Corp.

Feb
01
2006
Ruling
Commission payments for consulting services were not entitled to treatment as an administrative expense under section 503(b)(1)(A).
Procedural posture

After debtor filed a voluntary chapter 11 bankruptcy petition, movant individual filed a motion for allowance and payment of an administrative claim. The individual claimed that the debtor received payments post-petition from customers secured through the individual's consulting services. The debtor moved for summary judgment.

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opinion summary, case decided on February 01, 2006 , LexisNexis #0506-045
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In re Jillians Entmt Holdings Inc.

Jan
13
2006
Ruling
Creditor landlord was granted rents due as an administrative expense.
Procedural posture

Creditor landlord filed an application seeking an order requiring the administrator of debtor's chapter 11 plan to pay, as an administrative expense, the amount owed to it under debtor's lease, pursuant to 11 U.S.C. §§ 503(a) and 507(a)(1), The administrator objected to the landlord's application.

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opinion summary, case decided on January 13, 2006 , LexisNexis #0206-106
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In re Plymouth Rubber Co.

Dec
30
2005
Ruling
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
Procedural posture

The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).

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opinion summary, case decided on December 30, 2005 , LexisNexis #0306-082
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In re Blurton

Dec
13
2005
Ruling
Debtors were not granted administrative fees for payment of attorneys' fees since their counsel was not employed by or approved by the trustee.
Procedural posture

Debtors filed a motion for payment of an administrative claim under 11 U.S.C. § 503(b). The debtors sought payment of attorney's fees and reimbursement of appraisal costs. They also requested reimbursement for mileage and for "administrative hours" composed of the personal time both debtors spent on the case. Both the chapter 7 trustee and the United States trustee filed objections.

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opinion summary, case decided on December 13, 2005 , LexisNexis #0106-011
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Orland Holdings LLC v. Rhodes Inc. (In re Rhodes Inc.)

Nov
17
2005
Ruling
Creditor was denied motion for full monthly rental payment pursuant to a lease but was granted motion for payment of postfiling use of the premises as an administrative expense.
Procedural posture

Petitioner debtor leased nonresidential real property from respondent creditor pursuant to a lease agreement requiring the payment of annual rent in equal monthly installments on the first day of each month. The debtor filed for bankruptcy on November 4, 2004, without having paid the rent for November 2004. The creditor moved for an order compelling the debtor to pay the full monthly lease rent payment. The debtor contested the motion.

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opinion summary, case decided on November 17, 2005 , LexisNexis #0206-071
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