Thursday, September 5, 2013

For Purposes of 11 USC 503(b)(9) - a utility is NOT a good its a service - 9-4-13

The Bankruptcy Court in Puerto Rico denied as a pre-petition administrative expense a claim by a utility service.  The Court found that the utility is a service not a good.  Therefore, the utility would only have an unsecured claim (which they never timely filed). 

The Court gave a nice breakdown on case law and analyzed such cases.  The Court even disagreed with a fellow judge in the same district which found that a utility service.

Not that this issues comes up often, but it certainly was a nice analysis of case law.

In re PMC Marketing Corp
--- B.R. ----, 2013 WL 4735736
Bkrtcy.D.Puerto Rico,2013.
September 04, 2013 (Approx. 4 pages)
(currently unpublished)

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