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In re Plastech Engineered Prods.

In re Plastech Engineered Prods.

United States Bankruptcy Court for the Eastern District of Michigan, Southern Division

December 10, 2008, Decided; December 10, 2008, Filed

Case No. 08-42417, Chapter 11

Opinion

 [*830] Jointly Administered

OPINION OVERRULING DEBTOR'S OBJECTIONS TO CERTAIN SECTION 503(b)(9) CLAIMS BASED UPON DEBTOR'S ASSERTION THAT SUCH CLAIMS ARE FOR SERVICES AND  [**2] NOT FOR GOODS

I. Introduction

This Chapter 11 case involves many issues arising under § 503(b)(9), which was added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). The Court has already ruled on a number of these legal issues and has more awaiting it. 2 This opinion addresses the Debtor's objections to five specific § 503(b)(9) administrative expense claims filed by four separate claimants. Section 503(b)(9) gives administrative expense priority  [*831]  to a claim for "the value of any goods received by the debtor within 20 days before" the petition date. 11 U.S.C. § 503(b)(9).

There are two legal issues involved here: (1) whether each of these four claimants delivered "goods" to the Debtor as required in order to have an allowed § 503(b)(9) claim; and (2) in the case of one of these  [**3] claimants, where the alleged "goods" consist of natural gas, whether the claimant is precluded from a § 503(b)(9) claim because of the provisions of § 366 of the Bankruptcy Code regarding "utility service." The Debtor's objections to all of these claims were heard by the Court on October 22, 2008. At the conclusion of the hearing, the Court took the Debtor's objections under advisement. By agreement of the parties on the record, the Court is only ruling on these specific legal issues and is not ruling on any other objections that the Debtor may have to the § 503(b)(9) claims filed by these four claimants. For the reasons set forth in this opinion, the Court has determined to overrule in part the Debtor's objections.

II. Jurisdiction

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397 B.R. 828 *; 2008 Bankr. LEXIS 4082 **; 50 Bankr. Ct. Dec. 273

IN RE: Plastech Engineered Products, Inc., et al. 1 , Debtors.

CORE TERMS

invoices, predominant purpose, claimants, salt, pellets, administrative expense, sale of goods, snow, seller, chloride, goods and services, utility services, electricity, delivery, omnibus, rights, value of goods, raw material, manufacture, mixture, natural gas, reclamation, purposes, removing, sales contract, docket entry, file a claim, consisted, bumpers, charges

Bankruptcy Law, Unsecured Priority Claims, Administrative Expenses, General Overview, Commercial Law (UCC), Subject Matter, Goods, Definition of Goods, Administrative Powers, Utility Services