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§ 506(c)

In re Caltex Holdings LP

Ruling
Chapter 11 trustee's counsel's fees paid in reduced amount from secured lender's cash collateral.
Procedural posture

Debtor partnership filed a petition under chapter 11 of the Bankruptcy Code, and the case was subsequently converted to one under chapter 7 of the Bankruptcy Code. On August 9, 2010, counsel for the chapter 11 trustee filed its first and final application for compensation, asking for an award of $73,995 in professional fees and $2,289 in expenses, payable as an administrative expense. The debtor's counsel filed an objection.

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Commercial opinion summary, case decided on October 08, 2010 , LexisNexis #1110-085

United States v. Ralph Owens Trucking Co. (In re Ralph Owens Trucking Co.)

Ruling
Trustee not entitled to recover expenses of discovering federal tax overpayments from the IRS.
Procedural posture

Defendant, a trustee for a chapter 7 debtor, filed a motion to surcharge overpayments to the Internal Revenue Service (IRS) under 11 U.S.C.S. § 506(c) for the expenses he incurred in discovering those overpayments.

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Commercial opinion summary, case decided on January 27, 2010 , LexisNexis #0310-067

In re D&M Land Co. LLC

Ruling
Bank entitled to recover from forfeited earnest money from failed sales of debtor's property.
Procedural posture

Debtor, a land company that had filed a chapter 11, sought a final decree while a bank that was a secured creditor opposed the motion and filed its own motion for disgorgement of certain funds and a turnover of attorneys' fees. Issues included whether certain amounts were properly charged against the bank's interest in certain proceeds pursuant to 11 U.S.C.S. § 506(c) or whether the equitable exception in 11 U.S.C.S. § 552(b)(1) applied.

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Commercial opinion summary, case decided on January 15, 2010 , LexisNexis #0310-116

In re Miell

Ruling
Trustee could retain accrued rents from collateral real estate to pay expenses of preservation.
Procedural posture

Debtor's chapter 7 case was before the court on a creditor bank's motion for relief from the automatic stay. The chapter 7 trustee disagreed on an issue.

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Consumer opinion summary, case decided on December 29, 2009 , LexisNexis #0110-112

In re Kohl

Ruling
Trustee's application for distribution of proceeds of sale of debtor's co-op apartments and for fees and commissions approved.
Procedural posture

A chapter 7 trustee moved for an order authorizing him to make a distribution from the proceeds of sale of the debtor's two apartments. Also before the court were fee applications for various professionals and for the trustee for his interim statutory commissions. One of the creditors objected to the motions.

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Consumer opinion summary, case decided on December 21, 2009 , LexisNexis #0110-047

First Servs. Group Inc. v. OConnell (In re Ceron)

Ruling
Lien assignee entitled to proceeds of foreclosure sale of debtor's property less trustee's reasonable and necessary expenses of defending assignee's interest.
Procedural posture

Plaintiff assignee filed an adversary proceeding against defendant chapter 7 trustee, seeking an order requiring the trustee to pay the assignee funds he received from the New York Supreme Court, Kings County, after real property a chapter 7 debtor owned was sold at a foreclosure sale. The parties filed cross-motions for summary judgment.

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Consumer opinion summary, case decided on September 01, 2009 , LexisNexis #0909-118

Borrego Springs Bank LLC v. Skuna River Lumber LLC (In re Skuna River Lumber LLC)

Ruling
Bankruptcy court lacked jurisdiction to impose surcharge and judicial lien on property that was subject of an approved auction sale by estate.
Procedural posture

Appellant creditor sought review of a judgment of the United States District Court for the Northern District of Mississippi, which upheld a bankruptcy court's order surcharging and imposing a judicial lien on property that the creditor had previously purchased at a bankruptcy court ordered auction sale by a credit bid from the bankruptcy estate of appellee debtor.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 25, 2009 , LexisNexis #0509-044

In re Adams 3 Inc.

Ruling
Trustee's claim for reasonable and necessary costs and expenses of preservation of estate could not be surcharged against secured claim of IRS.
Procedural posture

The matter came before the Court on the chapter 7 Trustee's 11 U.S.C.S. § 506(c) Application to Recover Reasonable, Necessary Costs and Expenses of Preservation of the Estate from the secured creditor, the United States of America, Internal Revenue Service (IRS), who filed an opposition to the motion.

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Commercial opinion summary, case decided on February 13, 2009 , LexisNexis #0609-113

In re Tabares

Ruling
Trustee's objection to mortgagee's attorneys' fees sustained absent necessary contractual provision.
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code. A bank filed a claim, which included a request for $350 in postpetition attorney fees as part of the claim. A trustee objected to the claim to the extent that it sought the attorney fees.

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Consumer opinion summary, case decided on December 15, 2008 , LexisNexis #0309-079

Contractors Laborers Teamsters & Engrs Health & Welfare Plan v. M&S Grading Inc. (In re M&S Grading Inc.)

Ruling
Trustee was not unjustified in failing to exercise powers to proceed against bank that received debtor's accounts receivable proceeds.
Procedural posture

Appellants, various employee benefit plans and the plans' trustees, sought review after the District Court for the District of Nebraska affirmed orders issued by a bankruptcy court, including an order granting summary judgment to appellees, a bankrupt excavation company, a bankruptcy trustee, and a bank, as to appellants' claim that the trustee improperly made payments from the bankruptcy estate to the bank instead of to the plans.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on September 09, 2008 , LexisNexis #1008-029