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Kaler v. Bala (In re Racing Servs.)

Ruling: 
Bankruptcy court did not abuse discretion in partially vacating order for equitable subordination of claims by debtor's founder and former CEO.
Procedural posture: 
Appellants, the chapter 7 trustee and the State of North Dakota, challenged a ruling of the Bankruptcy Court for the District of North Dakota granting a motion to vacate part of an order that had equitably subordinated the claims of appellee, the former founder and CEO of debtor, as permitted by 11 U.S.C.S. § 510. Both appellants had unsuccessfully objected to the motion to vacate.
Issue: 
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Commercial case opionion summary, case decided on April 25,2008, LexisNexis #0508-080