Case 4 2 handy andy inc

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Case 4 2 handy andy inc

Michael Weininger arguedRusty A. We are asked to decide an important question of bankruptcy law that, surprisingly, has never elicited an appellate opinion, even though it has been the subject of a large number of decisions by bankruptcy and district judges-decisions that are on both sides of the question.

Often, after a tenant declares bankruptcy but before he as debtor in possession or the trustee in bankruptcy assumes or rejects the lease as he is entitled to dothe landlord receives a bill for taxes that the lease requires the tenant to reimburse him for.

Case 4 2 handy andy inc

The bankruptcy judge, B. The landlord, claiming that the date by which the tenant must pay the bill determines whether the debt is prepetition or postpetition, argues that the entire amount is a postpetition debt. Often these are the same date, but not always and not here.

The lease went into effect on October 1,and was to expire ten years later. The lease required the lessee to pay all real estate taxes on the property during its term and provided that if the lease ended during rather than at the end of a tax period, the taxes would be prorated between the parties, so that the lessee would be responsible only for those taxes that had accrued before termination.

The taxes were of course billed to National, as the owner of the property, rather than to Handy Case 4 2 handy andy inc. The lease provided that National would either transmit the bill to Handy Andy, which would then pay the taxes directly to the collector, or pay the taxes itself and bill Handy Andy for reimbursement, which would be due with the next rental payment due National under the lease.

National followed the second course, except that it sometimes gave Handy Andy a little longer time within which to reimburse it.

Cook County bills the taxpayer after the period for which the taxes have been assessed. Two weeks later, National paid the tax bill that it had received from Cook County and invoiced Handy Andy for the amount.

The following February, with Handy Andy still in bankruptcy, National received the bill for the first installment of taxes, paid it, and invoiced Handy Andy. Handy Andy rejected the lease in April. Section d 3 of the Bankruptcy Code provides that the trustee or as in this case debtor in possession, 11 U.

Even if the premise is correct, the conclusion may not follow for the installment. Remember that the entitlement created by section d 3 clicks in only when the order for relief is entered. Had the lease been terminated for one reason or another on January 1,Handy Andy would have had a definite obligation to reimburse National for the real estate taxes when those taxes were billed to National.

The obligation thus arose, in a perfectly good sense, before the bankruptcy. The obligation to reimburse National for the first installment of the taxes likewise arose before the bankruptcy. The purpose is to enable the debtor to keep going for as long as its current revenues cover its current costs, so that it does not collapse prematurely because of the weight of its existing debt.

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See In re Jartran, Inc. The purpose is relevant to any borrowing, trade or otherwise, in which the debtor engages after entering bankruptcy. That is not this case. The taxes had been paid, by National.

What it wanted was the continued occupancy of the leased property until it rejected the lease. To get this benefit it had to pay the full rent under the lease for every day that it continued to occupy the property; section d 3changing the prior law as we are about to seerequires no less.

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A trade creditor does not, by virtue of continuing to sell to the debtor after the latter has gone into bankruptcy, obtain a priority for what the debtor owes him for goods or services sold to the debtor before the bankruptcy.

National is in no different situation by virtue of section d 3. Could National have as a matter of economics made the new tenant reimburse it for the past taxes? For those taxes conferred no benefit on the new tenant, who would have reimbursed his current landlord for taxes covering the same period.

The only thing that obscures this conclusion is the broad wording of section d 3. But it has a history that is illuminating. At the same time that the automatic stay would prevent the landlord from evicting the tenant, Robinson v. Chicago Housing Authority, 54 F.

This was a problem for all postpetition creditors-section b 1 is not limited to landlords-but most of the others were dealing voluntarily with a bankrupt and thus knowingly assuming the risk of not being fully compensated for their services, while the landlord was being forced to deal with his bankrupt tenant on whatever terms the bankruptcy court imposed because he could not evict him.

There is no indication that Congress meant to go any further than to provide a landlord exception to b 1and thus no indication that it meant to give landlords favored treatment for any class of prepetition debts. Statutory language like other language should be read in context.

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We have now placed Twitpic in an archived state. Retailers make a worse performance so they are afraid of complain about factory distributors to Handy Andy.

They may be afraid of losing money or something related to that if they have a bad relationship with factory distributors/5(1). HANDY ANDY, INC.

2 Handy Andy, Inc. Case Study Is this a customer service problem? Why or why not? The issues found at Handy Andy, Inc. are tied to customer service. We can recall that customer service has four main dimensions, which are time, dependability, communication, and convenience (Murphy & Knemeyer, , p.

).The customers of Handy Andy, Inc. on several occasions . Home Essays Case Handy Andy, Inc. Case Handy Andy, Inc. Topics: Customer service, Individual Assignment 2: Handy Andy, Inc. By Jon Ezell 1. Yes; this problem has a .

Handy Andy, Inc. by Omar Sharif on Prezi