In re Dixie Fuels, Inc., Bankruptcy No. BK84-3086.
Decision Date | 11 July 1985 |
Docket Number | Bankruptcy No. BK84-3086. |
Citation | 52 BR 26 |
Parties | In re DIXIE FUELS, INC., Debtor. |
Court | U.S. Bankruptcy Court — Northern District of Alabama |
John Whittington and John Hartman, Birmingham, Ala., for debtor-in-possession.
Alan D. Levine, Birmingham, Ala., for Federal American Partners.
This matter came before the Court on an APPLICATION FOR PAYMENT OF ADMINISTRATIVE RENT filed by Federal-American Partners (hereinafter called "FAP"). After notice and hearing, the Court makes the following findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure.
On April 1, 1982 FAP entered into an agreement with Dixie Fuels, Inc. (hereinafter called "Dixie") for the lease of five Caterpillar Model 769L Dump Hauler Trucks. On June 12, 1984, Dixie filed its Chapter 11 petition. Since the date of the filing of its Chapter 11 petition, the debtor did not use or operate the five rock trucks.
On October 11, 1984, FAP filed a MOTION FOR ORDER COMPELLING DEBTOR IN POSSESSION TO ASSUME OR REJECT LEASE. The Court granted this motion on October 24, 1984 giving the debtor ten days to assume or reject the lease which would be deemed rejected upon failure to assume within the ten day period. The debtor in possession did not assume the lease.
Section 503 of the Bankruptcy Code provides in pertinent part:
11 U.S.C. Section 503(b)(1)(A) (1978). The recent 11th Circuit opinion of In re Airlift Int'l, Inc., 761 F.2d 1503 (11th Cir.1985) is dispositive, which held:
See also In re Rhymes, Inc., 14 B.R. 807, 8 B.C.D. 636, 5 C.B.C.2d 478 (Bkrtcy.D.Conn. 1981); (Cited with approval in In re Airlift Int'l, Inc., supra. 2 Collier on Bankruptcy 365.032 (15th Ed.1979)). The Court may authorize a figure different from that reserved in the lease based upon evidence of the actual use by the debtor. Id. (citing In re Peninsula Gunite, Inc., 24 B.R. 593 (B.A.P. 9th Cir.1982)). Claims under 11 U.S.C. Section 503(b)(1)(A) (1978) are judged by the actual value received by the estate. In re Rhymes, Inc., 14 B.R. 807, 808, 8 B.C.D. 636, 637, 5 C.B.C.2d 478, 480 (Bkrtcy.D.Conn.1981). The liability for actual use and occupancy is based upon the equitable principle of preventing unjust enrichment, rather than compensation of the creditor for loss to him. Id.
Applying these...
To continue reading
Request your trial