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New Cases For the Week of March 19, 2007 - March 23, 2007
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March 21, 2007 |
Case |
Court |
Holding |
Travelers Casualty & Surety Co. v. Pacific Gas & Electric Co.
(DBN Subscription Required) |
U.S. S. Ct. |
The 9th Circuit's Fobian rule (precluding recovery of post-petition contractually-authorized attorney fees as part of an unsecured claim except to the extent the fees relate to non-bankruptcy issues) is wrong and finds no support in the Bankruptcy Code.
Section 502 of the Bankruptcy Code lists specific limitations on the allowance of claims, and post-petition attorney fees are not among those limitations. The bankruptcy court erred in denying the unsecured creditor the right to include fees incurred litigating bankruptcy issues as part of its general unsecured proof of claim.
Because the argument was waived, the Court declines to rule on whether section 506 dictates a different result. |
In re: Insilco Technologies, Inc.
(DBN Subscription Required) |
3rd Cir. |
In an appeal arising out of the claim allowance process in a Chapter 11 bankruptcy liquidation, an order dismissing a liquidating trustee's objections to a proof of claim is affirmed where a settlement agreement prevented the trustee from bringing recharacterization and equitable subordination actions against the lenders at issue. |
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March 20, 2007 |
Case |
Court |
Holding |
In re Western Iowa Limestone, Inc.
(DBN Subscription Required) |
8th Cir. BAP |
The identification of a fungible good solely by the reference in a contract to an undivided share in an existing, specified fungible bulk does not constitute constructive possession of the goods by a buyer sufficient to defeat the claim of a secured creditor. |
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March 19, 2007 |
Case |
Court |
Holding |
In re Federal Mogul Global, Inc.
(DBN Subscription Required) |
3rd Cir. |
A debtor may modify an equipment lease under section 365(d)(5), after notice and hearing, "based upon the equities." However, unless and until a debtor obtains a lease modification order, it is required to comply with all obligations of an equipment lease after 60 days from the petition date until the lease is rejected. If a lease provides for rent due on the first day of the month, the debtor must pay the full months rent, even if the lease is rejected part way through the month. |
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