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Judge Jacqueline P. Cox

04 B 45177

Creditor requested an award of costs and attorneys’ fees it incurred when the debtor-in -possession filed a notice of appeal without first seeking a modification of the automatic stay imposed by 11 U.S.C. § 362(a). The court held that a trustee, or a debtor-in-possession, has the authority to unilaterally waive the protections of the automatic stay to proceed with acts of estate administration that would otherwise violate 11 U.S.C. § 362(a) if performed by anyone else. Creditor’s request was denied.

Judge Jack B. Schmetterer

In Re: Bernice Forte
October 6, 2005

03 B 45615
341 B.R. 859

Judge Carol A. Doyle

Chief Judge Pamela S. Hollis

In Re: Braude Jewelry Corp.
September 30, 2005

00 B 04596

Braude Jewelry filed chapter 11 and successfully confirmed its plan, including assumption of two leases. Within a year, Reorganized Braude filed a new liquidating chapter 11. After accomplishing certain actions -- including rejecting those assumed leases -- Braude II was dismissed. Meanwhile, the UST moved to convert Braude I to Chapter 7 and a trustee was appointed. The landlords whose leases were assumed in Braude I and rejected in Braude II filed claims in Braude I, seeking administrative priority for the claims arising from the breach of their leases. The IRS also filed a claim in Braude I, seeking allowance of a claim based on penalties for unpaid withholding and FICA taxes incurred during Braude II's post-petition business operations. The Braude I trustee filed an omnibus objection to claims. Held: Objections overruled and (1) landlords' claims allowed with administrative priority and (2) IRS claim allowed as a priority unsecured claim.