In re: Cranberry Growers Cooperative

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 18-3289
Decision Date: 
July 17, 2019
Federal District: 
W.D. Wisc.
Holding: 
Reversed and remanded

Bankruptcy Ct. erred in finding that direct payments made by debtor’s customers to debtor’s creditor did not constitute “disbursements” for purposes of 28 USC section 1930(a)(6), when calculating debtor’s quarterly fees owed to Trustee in instant Chapter 11 bankruptcy proceeding. Such payments are disbursements, where said term has expansive meaning that included payments made in ordinary course of business. Moreover, instant payments to debtor’s creditor were made on debtor’s behalf for purpose of paying down debtor’s revolving line of credit. Ct. also rejected debtor’s request to waive said quarterly fees and further found that debtor’s contention that Bankruptcy Ct.’s use of amended fee schedule violated uniformity requirement under Bankruptcy Clause of U.S. Constitution was untimely because it had failed to raise said issue in Bankruptcy Ct.