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2008 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

Appellate Court Decisions Related
To Bankruptcy Cases

By William Norton, III

value where post-petition interest had been disallowed.)

33. 503 Administrative Expense

In re Wind N' Wave, 2007 WL 3197102 (9th Cir. Nov. 1, 2007) (Petitioning creditors were entitled to recover attorney's fees under S 503(b)(4) for filing of involuntary petition as well as expense of appealing the denial of those fees by the bankruptcy court. Time and expenses devoted to securing an attorney's fee award are compensable if the services for which compensation is sought satisfy the requirements of S 330(a) and the case exemplifies a set of circumstances where the time and expense incurred in the litigation is necessary. If attorneys are not compensated for time spent obtaining fee awards, a risk arises that the effectively hourly rate will be decreased. The appeal of the bankruptcy court's denial of fees was necessary because this was the only method through which the creditors could receive their due compensation.)

Peters v. Pikes Peak Musicians Association, 462 F.3d 1265 (10th Cir. Sept. 1, 2006) (Tenth Circuit joins majority view that claims arising from collective bargaining agreements (CBAs) are not automatically entitled administrative priority status under S 507 under a theory that the CBA restrictions of S 1113 trump the literal language of S 503. Instead, the Tenth Circuit revised the administrative expense priority test in S 503 to require, instead of post-petition action by the debtor, a post-petition service rendered by the claimant that is necessary to preserve the bankruptcy estate.)

34. 506(a) Secured Claims -- Allowance

In re Oswalt, 444 F.3d 524 (6th Cir. April 20, 2006) (Michigan legislature's postpetition amendment of Michigan Mobile Home Commission Act (MMHCA) precluded the avoidance of a creditor's security interest in the debtor's mobile home.)

35. 506(b) Secured Claim -- Post-petition Fees

In re EnRe LP, 457 F.3d 493 (5th Cir. July 25, 2006) (Holder of allowed secured claim arising from a statutory lien, rather than a consensual security agreement, may not recover attorney's fees and costs under pre-BAPCPA S 506(b).)

36. 507(a)(1) Priority -- Employee Compensation

Supplee v. Bethlehem Steel Corporation, 479 F.3d 167 (2nd Cir. Mar. 2, 2007) (An early retirement benefit owed to one of debtor's employees, as a

 

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