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Case 1:20-bk-12043 Doc 646 Filed 03/05/21 Entered 03/05/21 09:58:42 Desc Main <br />Document Page 3 of 5 <br />set forth in the BWC Application are not entitled to treatment as an administrative expense. <br />8. First, the BWC fails to meet its burden of proof because it includes no evidence <br />with the BWC Application which would allow the parties or the Court to determine whether the <br />amounts set forth in the BWC Application are entitled to administrative priority. BWC has the <br />burden of proving that its claim qualifies as an administrative expense and "that the expenses were <br />reasonable, necessary and benefited the estate." Nat'l Union Fire Ins. Co. v. VP Bldgs., Inc., 606 <br />F.3d 835, 838 (6th Cir. 2010). BWC must demonstrate that its claimed expenses are entitled to <br />administrative priority by a preponderance of the evidence. In re HNRC Dissolution Co., 371 B.R. <br />210,226 (E.D. Ky. 2007), affd, 536 F.3d 683 (6th Cir. 2008). <br />9. The BWC Application only contains a one -page "memorandum" which sets forth <br />an "estimated premium." There is no evidence included which sets forth the origination of the <br />workers' compensation obligation; how and when were the workers' compensation obligations <br />were incurred and to be paid; or if the amounts truly relate to the post -petition period. Because <br />administrative claims reduce the funds available for creditors and other claimants, requests for <br />administrative expense must be "strictly construed." Nat'l Union, 606 F.3d at 838. The simple <br />fact that the BWC Application relies on an "estimated premium" is enough for this Court to <br />overrule the BWC Application because an "estimate" is not an "actual, necessary, cost and expense <br />ofpreserving the estate." 11 U.S.C. § 503(b)(1)(A); HNRC Dissolution, 371 B.R. at225, affd, 536 <br />F.3d 683 (6th Cir. 2008). <br />10. Second, the BWC Application seeks administrative treatment for claims not <br />entitled to administrative priority. The BWC Application provides that in addition to post -petition <br />2 Prior to the filing of this Objection, the Liquidating Trustee requested invoices or other documentation <br />related to the BWC alleged obligations from the Debtors' former Chief Restructuring Officer. The Debtors' CRO <br />advised that he was not in possession of any documents supporting the BWC Application. <br />3 <br />4816-6341-0399.1 <br />