In re: Altheimer & Gray

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-3336
Decision Date: 
April 15, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Bankruptcy Ct. did not err in denying creditor's motion to have Trustee pay his claim where creditor was non-unit partner of defunct debtor-law firm, and where creditor sought return of capital contributions and unpaid compensation pursuant to Chapter 11 plan. Terms of plan specifically required that claims of non-unit partners be subordinated to debts owed to other creditors, and while creditor's position within law firm would not be viewed as partner under Uniform Partnership Act, creditor could not rely on definition of partner in Act to gain priority for his claim. Fact that creditor's claim was allowed did not mean that it was required to be paid where, as here, said claim did not enjoy high enough priority.