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xii. In re Energy Conversion Devices, Inc., 486 B.R. 872 (Bankr. E.D. Mich. 2013)
Issue: Whether an administrative expense request under 11 U.S.C. § 503(b)(9) may ever be disallowed based on 11 U.S.C. § 502(d).
Holding: The court held that a Section 503(b)(9) claim cannot be disallowed based on 11 U.S.C. § 502(d). A supplier, claiming to have supplied steel to the debtor within the twenty days prior to the debtors' petition, sought an order allowing its administrative expense claim. The trustee objected to the allowance of the supplier's claim because preferential transfers were made to the supplier and 11 U.S.C. § 502(d) disallowed the suppliers claim because it received an avoidable transfer. The court recognized the split in authority of whether Section 502(d) applies to Section
503(b) requests for administrative expenses. The court was persuaded by the cases holding that Section 502(d) does not apply to Section 503(b)(9) requests. Particularly, the court agreed with the Second Circuit's holding that there is a distinction between claims generally and requests for administrative expenses under Section 503(b) and that there is also a distinction in the allowance process of the two as indicated by the language in Sections 502 and 503.
xiii. In re Pettingill Enterprises, Inc., 486 B.R. 524 (Bankr. D.N.M. 2013)
Issue: Whether the creditor leasing equipment to the debtor that operated a construction/excavation business was entitled to an administrative expense claim for the leased equipment.
Holding: The court essentially held that the equipment lessor was entitled to an administrative expense claim for all charges directly related to post-petition use of the equipment that benefitted the estate. The court found that charges for leased equipment that broke down post-petition were administrative expenses to the extent the charges accrued between the petition date and the date the equipment ceased working. The court found that excess hourly charges for the debtor's use of equipment in excess of the hourly limit set by contract were administrative expenses. The court found that repair costs were only administrative expenses to the extent the lessor could produce sufficient evidence the repair work was for damages incurred post-petition. Lastly, hauling costs under the debtor's contract were administrative expenses.
i. In re Community Memorial Hospital, 494 B.R. 906 (Bankr. E.D. Mich. 2013)
Issue: Whether a claim filed by the state unemployment insurance agency for reimbursement of unemployment benefits to the not-for-profit debtor hospital's former employees sought a payment for taxes within the meaning of the statute giving priority status to unsecured tax claims of government units.
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