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§ 503(b)(1)(A)

In Rockford Prods. Corp.

Ruling
Administrative expense claim allowed with reductions for excessive services.
Procedural posture

This matter came before the court on the objection to the application of a claimant for allowance and payment of an administrative expense claim pursuant to 11 U.S.C.S. § 503(b)(1)(4) filed by the chapter 7 trustee, pursuant to 11 U.S.C.S. § 330 and Fed. R. Bankr. P. 2016.

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Commercial opinion summary, case decided on August 24, 2009 , LexisNexis #1009-040

In re Go Fig Inc.

Ruling
Administrative expense claim for lessor's postpetition, prerejection performance was not subject to trustee's recoupment defense.
Procedural posture

A lessor of chapter 7 debtors filed an application for allowance of an administrative priority claim in connection with a rejected lease. The chapter 7 trustee objected. Two threshold issues were before the court for determination, specifically, whether the limitations in 11 U.S.C.S. § 503(b)(1)(A) applied and whether the trustee had the defense of recoupment to reduce the lessor's allowed claim by the amount of the security deposit.

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Commercial opinion summary, case decided on February 05, 2009 , LexisNexis #0509-081

In re Merit Transp. Inc.

Ruling
Landlord entitled to reasonable administrative expense for trustee's use of space leased by debtor.
Procedural posture

A debtor originally filed for relief under chapter 11 of the Bankruptcy Code and the matter was converted to chapter 7. After the conversion a chapter 7 trustee entered into an agreement with a landlord so that the trustee could maintain possession of the space leased to the debtor while the trustee liquidated assets. The landlord filed an application for administrative expenses.

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Commercial opinion summary, case decided on January 23, 2009 , LexisNexis #0309-045

In re Am. Coastal Energy Inc.

Ruling
Claim for expenses in plugging debtor's oil and gas wells entitled to priority status.
Procedural posture

Debtor corporation filed a petition under chapter 11 of the Bankruptcy Code, and the Texas Railroad Commission filed a claim against the debtor's bankruptcy estate, seeking payment of costs it incurred postpetition to cap oil and natural gas wells the debtor owned. The Commission claimed that the expenditures were entitled to administrative expense priority under 11 U.S.C.S. § 503(b)(1)(A), the debtor challenged that claim.

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Commercial opinion summary, case decided on January 15, 2009 , LexisNexis #0309-008

In re Elizabethtown Family Care Clinic LLC

Ruling
Landlord allowed administrative expsense claim for rent incurred after petition date.
Procedural posture

Movant creditor, a landlord, sought payment of an administrative expense claim per 11 U.S.C.S. § 503(b)(1)(A) in connection with the estate's post-petition occupation of a medical office leased by debtor tenant from the creditor. The trustee filed an objection to the proof of claim contesting the proper amount thereof. At issue was the date upon which the trustee's obligation under 11 U.S.C.S. § 365(d)(3) began to run.

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Commercial opinion summary, case decided on December 18, 2008 , LexisNexis #0109-077

UMW 1974 Plan & Trust v. Lexington Coal Co. LLC (In re HNRC Dissolution Co.)

Ruling
Disallowance of administrative expense claim by multiemployer pension plan affirmed.
Procedural posture

Debtors participated in a multiemployer pension plan until they terminated operations two years after filing chapter 11 cases. Termination constituted a complete withdrawal from the plan and caused them to incur withdrawal liability under the Employee Retirement Income Security Act. The plan challenged the U.S. Bankruptcy Court for the Eastern District of Kentucky's order denying its application for allowance of an administrative expense claim.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on November 04, 2008 , LexisNexis #1208-065

Henderson v. Powermate Holding Corp. (In re Powermate Holding Corp.)

Ruling
Claims under Worker Adjustment and Retraining Notification Act were not entitled to administrative expense priority status.
Procedural posture

Plaintiff former employee filed a putative class action against defendant chapter 11 debtors, alleging that they violated employees' rights under the Worker Adjustment and Retraining Notification Act (WARN Act), 29 U.S.C.S. § 2101 et seq. The employee claimed that any damages employees recovered were entitled to administrative expense status under 11 U.S.C.S. § 503(b)(1)(A)(ii). The debtors opposed the employee's claim.

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Commercial opinion summary, case decided on October 10, 2008 , LexisNexis #1108-041

Meredith Corp. v. Home Interiors & Gifts Inc.)

Ruling
Holder of trademark licensed for use by debtor entitled to administrative expense claim for postpetition use of the trademark which benefitted the estate.
Procedural posture

Plaintiff creditor, the holder of a trademark licensed for use to the debtor, calculated an administrative expense claim at $ 1,125,000.24 for the debtor's postpetition continued use of the trademark, although the debtor had nominally rejected the license agreement under 11 U.S.C.S. § 503(b)(1)(A). The debtor denies that the claim was an allowable administrative expense claim, asserting it was a pre-petition claim under 11 U.S.C.S. § 502(g)(1).

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Commercial opinion summary, case decided on October 09, 2008 , LexisNexis #1108-007

In re Hermesch Entities I

Ruling
Claim for insurance premiums that were not part of postpetition transaction and did not benefit estate was not entitled to administrative expense status.
Procedural posture

The debtors filed for relief under chapter 12 of the Bankruptcy Code and a plan was approved. The creditor filed a motion for an administrative claim for reimbursement of insurance proceeds.

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Commercial opinion summary, case decided on August 19, 2008 , LexisNexis #0908-117

In re Michalek

Ruling
Breach of postpetition vehicle lease that conferred benefit on the estate could give rise to administrative expense claim.
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code. A creditor filed a motion for allowance of an administrative expense claim for the amount of $ 6,091 for a post-petition breach of a vehicle lease agreement, pursuant to 11 U.S.C.S. § 503(b)(1)(A), the trustee objected to the motion.

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Consumer opinion summary, case decided on August 19, 2008 , LexisNexis #0908-116