Federal 7th Circuit Court
Civil Court
Bankruptcy
Dist. Ct. did not err in finding that creditor’s tort-related claim could not be viewed as administrative expense, and thus having preference over claims of other creditors, where instant claim arose out of loss incurred by creditor after debtor’s gas collection and control system malfunctioned and caused creditor to sell its neighboring hotel for less than what it could have obtained had malfunction not occurred. Administrative expenses include those debts that are incurred for preservation of bankruptcy estate after Trustee has taken control of estate, such that instant debt could not be classified as administrative expense where: (1) malfunction occurred only four days after Trustee had taken control of operation; (2) bankruptcy estate lacked sufficient funds to have prevented malfunction of system that arose after problems with system had surfaced over period of years; and (3) at time of malfunction, Trustee was in process of liquidating of debtor’s business and had done nothing with respect to debtor’s assets at time of malfunction that might have enhanced their value for benefit of all creditors.