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GFI Wis., Inc. v. Reedsburg Util. Comm'n

GFI Wis., Inc. v. Reedsburg Util. Comm'n

United States District Court for the Western District of Wisconsin

November 10, 2010, Decided; November 12, 2010, Filed

10-cv-388-bbc

Opinion

 [*794]  OPINION and ORDER

Appellant GFI Wisconsin, Inc., formerly known as Grede Foundries, Inc., appeals an order of the bankruptcy court allowing appellees Reedsburg Utility Commission and Wisconsin Electric Power Company to claim administrative priority status under 11 U.S.C. § 503(b)(9) for the value of electricity they supplied to appellant during the 20 days before appellant filed for bankruptcy. Appellant contends that because electricity is not a "good" within the meaning of § 503(b)(9), the bankruptcy court should have disallowed the claim. In addition, appellant contends that even if electricity is a good for purposes of § 503(b)(9), the bankruptcy court erred by failing to apply the "predominant purpose" test and by allowing appellees to recover the value of services that were bundled with the electricity charges.

This court has jurisdiction over  [**2] the appeal pursuant to 28 U.S.C. § 158(a). The bankruptcy court entered an order on June 1, 2010, denying appellant's objection to appellees' § 503(b)(9) claims. This is a final order for purposes of § 158(a) because there is nothing more to do with respect to appellant's objection. In re Smith, 582 F.3d 767, 776 (7th Cir. 2009) (] "An order of the bankruptcy court may be considered final, and thus immediately appealable, when it definitively resolves a discrete dispute within the larger case."); In re Ross-Tousey, 549 F.3d 1148, 1152 (7th Cir. 2008) (] "[A]n adjudication by the bankruptcy court is definitive because it cannot be affected by the resolution of any other issue in the proceeding, and therefore no purpose would be served by postponing the appeal to the proceeding's conclusion.") (internal quotations omitted).

I agree with the bankruptcy court that appellees may claim administrative priority for the electricity they provided appellant in the 20-day period before appellant filed its bankruptcy petition. Therefore, I will affirm the decision of the bankruptcy court denying appellant's objection to the claims.

OPINION

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440 B.R. 791 *; 2010 U.S. Dist. LEXIS 122681 **; Bankr. L. Rep. (CCH) P81,912; 73 U.C.C. Rep. Serv. 2d (Callaghan) 38

GFI WISCONSIN, INC., f/k/a GREDE FOUNDRIES, INC., Appellant, v. REEDSBURG UTILITY COMMISSION and WISCONSIN ELECTRIC POWER COMPANY, Appellees.

Prior History: In re Grede Foundries, Inc., 435 B.R. 593, 2010 Bankr. LEXIS 1823 (Bankr. W.D. Wis., 2010)

CORE TERMS

electricity, bankruptcy court, meter, movable, predominant purpose, purposes, electric energy, parties, customer, reply brief, consumed, qualifies, bundled, courts, contends, utility services, reclaimable, reclamation, sale of goods, electrons, seller, goods and services, provide a service, transactions, consumption, measured, load, physical nature, sales contract, natural gas

Bankruptcy Law, Procedural Matters, Judicial Review, Jurisdiction, Commercial Law (UCC), Subject Matter, Goods, Definition of Goods, Standards of Review, Clear Error Review, De Novo Standard of Review, Governments, Legislation, Interpretation, General Overview, Unsecured Priority Claims, Administrative Expenses, Miscellaneous Expenses, Sales (Article 2), Criminal Law & Procedure, Theft & Related Offenses, Larceny & Theft, Torts, Strict Liability, Products Liability, Theories of Liability, Strict Liability, Administrative Powers, Utility Services, Estate Property, Avoidance, Limitations on Trustee Powers, Hybrid Transactions

Bankruptcy Law, Procedural Matters, Judicial Review, Jurisdiction, Commercial Law (UCC), Subject Matter, Goods, Definition of Goods, Standards of Review, Clear Error Review, De Novo Standard of Review, Governments, Legislation, Interpretation, General Overview, Unsecured Priority Claims, Administrative Expenses, Miscellaneous Expenses, Sales (Article 2), Criminal Law & Procedure, Theft & Related Offenses, Larceny & Theft, Torts, Strict Liability, Products Liability, Theories of Liability, Strict Liability, Administrative Powers, Utility Services, Estate Property, Avoidance, Limitations on Trustee Powers, Hybrid Transactions