Brass Kettle Restaurant, Inc., In re, No. 85-1508
| Court | United States Courts of Appeals. United States Court of Appeals (7th Circuit) |
| Writing for the Court | Before BAUER and POSNER, Circuit Judges, and GRANT; GRANT |
| Citation | 790 F.2d 574 |
| Parties | Bankr. L. Rep. P 71,138 In re BRASS KETTLE RESTAURANT, INC., Debtor, Laurence H. KALLEN, as Trustee, Plaintiff-Appellee, v. ASH, ANOS, FREEDMAN & LOGAN, Defendant-Appellant. |
| Docket Number | No. 85-1508 |
| Decision Date | 06 May 1986 |
Page 574
Laurence H. KALLEN, as Trustee, Plaintiff-Appellee,
v.
ASH, ANOS, FREEDMAN & LOGAN, Defendant-Appellant.
Seventh Circuit.
Decided May 6, 1986.
Page 575
George J. Anos, Ash, Anos, Freedman & Logan, Chicago, Ill., for defendant-appellant.
Laurence H. Kallen, Arnstein, Gluck, Lehr, Barron & Milligan, Chicago, Ill., for plaintiff-appellee.
Before BAUER and POSNER, Circuit Judges, and GRANT, Senior District Judge. *
GRANT, Senior District Judge.
The Bankruptcy Court granted summary judgment to plaintiff-appellee finding that certain monies received by defendant-appellant constituted a preferential transfer under 11 U.S.C. Sec. 547(b) and did not qualify as an exception to preferential transfers under 11 U.S.C. Sec. 547(c)(1)-(3) (Supp. V 1981). The district court affirmed and defendant-appellant seeks our review. We reverse.
Facts
On October 11, 1981, debtor, Brass Kettle Restaurant, Inc., and defendant-appellant, the law firm Ash, Anos, Freedman & Logan, entered into a retainer agreement under which Ash, Anos promised to represent Brass Kettle in certain actions arising out of a fire at Brass Kettle's corporate premises. The agreement stated that
[i]n return for said defense, the BRASS KETTLE RESTAURANT, INC. and the undersigned, agree to pay the firm of ASH, ANOS, FREEDMAN & LOGAN, the sum of ONE THOUSAND FIVE HUNDRED DOLLARS plus Forty Percent (40%) of any recovery made in their behalf, with the understanding that there shall be a rebate of the contingency fee of Forty Percent (40%) based upon the actual hours expended in their behalf at the hourly rate of ONE HUNDRED DOLLARS ($100.00) per hour or the then current hourly rate of the firm of ASH, ANOS, FREEDMAN & LOGAN.
Answer to Adversary Complaint, Exhibit A, Bankruptcy Record at 2. On November 17, 1981, Ash, Anos' efforts resulted in a $40,000 settlement in one of the actions. Ash, Anos placed 40% of the settlement, or $16,000, in a segregated account.
Brass Kettle entered bankruptcy proceedings on December 23, 1981, pursuant to an involuntary petition. Ash, Anos remitted $7,085.16 to plaintiff-appellee, Brass Kettle's Trustee in Bankruptcy, which Ash, Anos determined to be the excess portion, over the actual hours expended, of the retained $16,000. Ash, Anos' billing records reflect statements for Brass Kettle's legal fees in the amounts of $5,109.84, $2,055, and $1,750. The statements show that payment of the first amount was made on December 3, 1981 and of the second amounts, on January 4, 1982. After failing to recoup this $8,914.84 from Ash, Anos, the Trustee filed the instant action and recovered these payments as preferential transfers. Brass Kettle's bankrupt estate consists only of the $40,000 settlement obtained by Ash, Anos.
Issue
The resolution of this appeal involves only one issue:
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In re Stoecker, Bankruptcy No. 89 B 02873.
...a debt, duty or obligation owed by one party to another; (2) a res to which the obligation attaches, In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir. 1986); W.E. Erickson Constr., Inc. v. Congress-Kenilworth Corp., 132 Ill.App.3d 260, 270, 87 Ill.Dec. 536, 477 N.E.2d 513 (1s......
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Koch Refining v. Farmers Union Cent. Exchange, Inc., No. 86-1102
...695 F.2d 1012 (7th Cir.1982). 6 State law determines whether property is an asset of the debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986). To determine whether this alter ego action is property of the debtor or of the appellants, therefore, we must turn to the l......
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In re Baldin, Bankruptcy No. 90-60359
...the courts generally look to state law to determine whether property is an asset of a debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986); see also, In re K & L Limited, 741 F.2d 1023, 1030 n. 7 (7th Cir.1984); Matter of Gladstone Glen, 628 F.2d 1015, 1018 (7th Cir......
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In Re Kraft LLC, Bankruptcy No. 07-21367 JPK.
...the courts generally look to state law to determine whether property is an asset of a debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986); see also, In re K & L Limited, 741 F.2d 1023, 1030 n. 7 (7th Cir.1984); Matter of Gladstone Glen, 628 F.2d 1015, 1018 (7th Cir......
-
In re Stoecker, Bankruptcy No. 89 B 02873.
...a debt, duty or obligation owed by one party to another; (2) a res to which the obligation attaches, In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir. 1986); W.E. Erickson Constr., Inc. v. Congress-Kenilworth Corp., 132 Ill.App.3d 260, 270, 87 Ill.Dec. 536, 477 N.E.2d 513 (1s......
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In re Baldin, Bankruptcy No. 90-60359
...the courts generally look to state law to determine whether property is an asset of a debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986); see also, In re K & L Limited, 741 F.2d 1023, 1030 n. 7 (7th Cir.1984); Matter of Gladstone Glen, 628 F.2d 1015, 1018 (7th Cir......
-
Koch Refining v. Farmers Union Cent. Exchange, Inc., No. 86-1102
...695 F.2d 1012 (7th Cir.1982). 6 State law determines whether property is an asset of the debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986). To determine whether this alter ego action is property of the debtor or of the appellants, therefore, we must turn to the l......
-
In Re Kraft LLC, Bankruptcy No. 07-21367 JPK.
...the courts generally look to state law to determine whether property is an asset of a debtor. In re Brass Kettle Restaurant, Inc., 790 F.2d 574, 575 (7th Cir.1986); see also, In re K & L Limited, 741 F.2d 1023, 1030 n. 7 (7th Cir.1984); Matter of Gladstone Glen, 628 F.2d 1015, 1018 (7th Cir......