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GENERAL50193
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Last modified
8/24/2016 8:32:53 PM
Creation date
11/23/2007 5:46:08 PM
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DRMS Permit Index
Permit No
M1977376
IBM Index Class Name
General Documents
Doc Name
NOTICE OF HEARING ON DEBTORS MOTION FOR AUTHORIZATION TO USE PROPERTY OF ESTATE OUTSIDE ORDINARY COU
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D
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BANKAUPTCY COURT DECISIONS <br />1417 <br />Citc as 21 BCD !al i <br />many thereafter submi[ a claim under §§ 330, 503, and 507 for charucal functions and [ha[ the debtor could retain <br />reimbursement which claim shall be allowed in a reasonable [hose services undo: Section i 108. <br />amount <br />Inn; SIELING ASSOCL',TES LIMITED <br />PARTNERSHIP, <br />Debtor <br />No. 91-10561-AB <br />Chapter l l <br />Banla. E.D. Va.,?.lezandria Division <br />7uly 8,1991 <br />Section 327(a) is limited m [hose profession- <br />aLs who provide a service to the banlrn[prcy esram <br />rather than merely enabling the debtor to remain in <br />business and comply with local Ltws. <br />One year prior w filing for Chaps ! 1 ptorec- <br />don, one of the debtor's oil tanla exploded contam- <br />inating the local ground water. As a result the state <br />requfred the debtor to monitor local wells and <br />ground ware. The services of an etta¢onmental <br />tautology consultant were setair[ed for this pur- <br />pose. Following the filing of the baNwptcy peu- <br />don, the debtor sought the court's permission w <br />continue m employ this consultant The US. <br />Trustee objected that the consultan[ was no[ a pro- <br />fessional person or was not drsinteresred as he held <br />a prepetiuon clairtt against the estate. <br />HOLDING. The battkruprcy court held that an <br />environmental toxicology consultant is not a pia <br />fessional of the type whose employment requites <br />courtapproval. <br />Scdon 327(a) is limited m the employment <br />of professionals who actually administer the estate <br />as opposed w [hose who serve mechanical func- <br />tions necessary for the debmr's operation, the court <br />determined "Notwithstanding the fact tha[ [the <br />consultan['sJ rererrtion may be necessary for the <br />Debtor m comply with MaryLvtd law, (the consul- <br />tantj is not assisting the Debtor with its phut with <br />the sale or ptuchase of assets or with negotiating <br />with creditors."Therefore, the coon concluded tha[ <br />the consultant's services fit in[o the camgary of ma <br />Counsel for Deb[or. Lawrence A. Ka¢;Zuckerman, <br />Spaeder, Goldstein, Taylor & Kolker, Washingtcn, <br />DC <br />U.S. Ttus[ee: John E. Wailes, Alexandria. VA <br />MARTIN V. B. BOSTETTER,JR" Chief Banlcuotty <br />Judge <br />Memorandum Opinion <br />This made: is before the Court on the appliation ([he "Ap- <br />pGration') of Sieling Associa[es Limi[ed Parctership (the <br />"Debtor m employ James M. Kawecki and Kawecki Associ- <br />ates (collectively, "Kawerki'~ nunc pro conc. pursuant ro 11 <br />U.S.C. § 327(a), as an environmental consultant to monitor <br />certain proprsty (the "Propeny'~ of the Debtor for oil conrami- <br />nation. Because Kawecki is no[ a "professional person," as that <br />phrase is used in Section ~27(a), and for the other reasotu stated <br />herein, this Coup denies the Debtor's Application but holds tha[ <br />the Debtor may employ Kawecki in the ordinary course of busi- <br />ness without dtis Court's approval pursuan[ to 11 U.S.C. <br />§ 1108. <br />In October 1989, over one year prior to the Debtor's filing <br />of a petition for relief under the Bankrtrptcy Code, an oil tank <br />exploded on the Property. As a result of such explosion, ground <br />water on the Property was contaminated. The State of `iaryland <br />required and continues to require the Debtor to monitor wells <br />and ground water on the Property. Kawecki, an environmental <br />toxicology consultant was hired by [he Debtor in 1989 for the <br />purpose of conducting such monitohng and removing any con- <br />Lvninatedground water. <br />On February 12, 1991 the Deb[or filed a petition for relief <br />under Chapter 11 of the Bartlmtptcy Code. On April 10, 1991 <br />the Debmr filed the Application. Kawecki has billed the Deb[or <br />52500 forservices rendered subsequent w the filing of the peti- <br />tion and has estimated the cost of its furore services to be <br />57,600. Kawecki holds a chum a¢ainst the Debtor's estate for <br />52,370 [or services tendered prior to the Deb[or's filing of its <br />petition. <br />The Unfired States Trustee filed an objection to the Appli- <br />cation contending rho[ Kawecld is not a "professional person," <br />or, in the aite:nauve, that Kawecki is no[ "disinterested" as rho[ <br />term is used in I 1 U.S.C. § 327(a) in light of the fact tha[ Ka- <br />wecJd is a creCitor of the Debmr. The Trustee does, however, <br />concede that the Debtor may employ Kawecki in the orCinary <br />coupe of Ne Deb[or's business. On April 15, 1991 this Coun <br />heard on an expedited bails the Debtor's Application and took <br />the ma¢erunCe:advisement. <br />In a Chap: 11 reorganiz~dor, case, a debtor in possession <br />may continue tiro operation of iii business without [he necessity <br />m 1991 LAP Puhtleatlons ~ 8/8/91 <br />
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