Cert to the Supreme Court and other cases

Certiorari Granted

The U.S. Supreme Court granted cert in Howard Delivery Service, Inc. v. Zurich American Insurance Co., No. 05-128 on the issue of whether unpaid premiums for workers compensation coverage owing to Zurich American qualify for priority status under the old 507(a)(4) (now 507(a)(5)) as "contributions to an employee benefit plan arising from services rendered”. The lower court decision is reported at In re Howard Delivery Service, 403 F.3d 228 (4th Cir. 2005). The issue will revolve around whether the statutory language requires the employee benefit plan to be a wage substitute. Several circuits had relied on legislative history to find it does. The Fourth Circuit disagreed and cited a Ninth Circuit decision that relied on the statute's plain and unambiguous meaning. Given its past decisions, the Supreme Court surely will use the “plain meaning” approach.

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Thomas v. Money Mart Financial Servs., Inc. (8th Cir. 2005)

The bankruptcy court's order finding that defendant did not violate the automatic stay by presenting plaintiff's checks for payment postpetition is affirmed where plaintiff had not received a discharge at the time defendant presented the checks.

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In re Athens/Alpha Gas Corp. (8th Cir. 2005)

Order denying plaintiffs' claim for administrative expenses reversed where there existed a post-petition transaction by plaintiffs which provided a tangible benefit to the bankruptcy estate.