In Re Aerospace Technologies, Inc.

199 B.R. 331, 30 U.C.C. Rep. Serv. 2d (West) 933, 1996 Bankr. LEXIS 1217, 1996 WL 441823
CourtUnited States Bankruptcy Court, M.D. North Carolina
DecidedMay 10, 1996
Docket19-50066
StatusPublished
Cited by4 cases

This text of 199 B.R. 331 (In Re Aerospace Technologies, Inc.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Aerospace Technologies, Inc., 199 B.R. 331, 30 U.C.C. Rep. Serv. 2d (West) 933, 1996 Bankr. LEXIS 1217, 1996 WL 441823 (N.C. 1996).

Opinion

MEMORANDUM OPINION

WILLIAM L. STOCKS, Chief Judge.

This case came before the court on April 30, 1996, for determination of the claims of Airway Moving & Storage, Inc. (“Airway”) and Fredrickson Motor Express Corp. (“Fre-drickson”). Each of the claimants contends that it has a secured claim as well as a cost of administration claim under § 503(b).

JURISDICTION

The court has jurisdiction over the subject matter of this proceeding pursuant to 28 U.S.C. §§ 151,157 and 1334, and the General Order of Reference entered by the United States District Court for the Middle District of North Carolina on August 15, 1984. This is a core proceeding within the meaning of 28 U.S.C. § 157(b) which this court may hear and determine.

MATTER BEFORE THE COURT

When this Chapter 7 case was filed, certain personal property of the Debtor, Aerospace Technologies, Inc. (“Aerospace”), was in the possession of Airway at its facility in Wilmington, North Carolina. Other personal *334 property of the debtor was in the possession of Fredrickson contained in two trailers located at the Fredrickson terminal in High Point, North Carolina. Each of the claimants has filed a secured claim 1 in this case in which a statutory, possessory lien is claimed by each claimant. The personal property of Aerospace remained in the possession of Airway and Fredrickson until November of 1995, when the property was surrendered to the Trustee after orders were entered in this case authorizing the Trustee to sell the personal property and transferring the liens, if any, of Airway and Fredrickson to the proceeds of such sale. Each of the claimants also contends that it has a cost of administration claim under § 503(b), based upon the claimants having stored the personal property of the estate from the time that this case was filed on May 15, 1995, until the Trustee took possession in November of 1995.

The amount claimed by Fredrickson for its pre-petition secured claim is $11,670.00, consisting of freight charges of $950.00 ($475.00 per trailer for two trailers) plus detention charges of $10,720.00 for the period from January 24, 1995 through May 14,1995. The pre-petition detention charges claimed by Fredrickson for each of the trailers consisted of $90.00 for the first three days of detention, $120.00 for the fourth through sixth day, excluding weekends and holidays, and $50 per day thereafter through May 14, 1995. The post-petition, cost of administration claim asserted by Fredrickson is in the amount of $20,000.00 and is based upon detention or demurrage charges for the two trailers at the rate of $50.00 per day, per trader, from May 15,1995, the date on which this case was filed, through November of 1995 when the Trustee took possession of the personal property from Fredrickson.

The amount claimed by Airway for its pre-petition secured claim is $24,357.12, representing $14,357.12 of charges related to packing, loading and unloading of the personal property and $10,000.00 claimed as storage for the personal property held by Airway from mid-January until May 15, 1995, the date on which this case was filed. The amount claimed by Airway for its cost of administration claim is $16,250.00, representing storage charges from May 15, 1995 through November of 1995, the date on which the Trustee took possession of the personal property which was being held by Airway. Airway has computed its storage charges at the rate of $2,500 per month for the entire period that it held the personal property of Aerospace.

FACTS

In January of 1995, Airway was engaged in the business of moving and storage of furnishings and general commodities and had a facility located in Wilmington, North Carolina, which included a warehouse which was used to store property of customers of Airway. Fredrickson is an interstate motor carrier licensed by the Interstate Commerce Commission with a number of terminals, including a terminal in Wilmington and one in High Point, North Carolina.

Prior to January of 1995, Aerospace had certain personal property consisting of aircraft parts, office furniture, file cabinets, tools and equipment related to the testing and repair of aircraft parts, and other miscellaneous parts and equipment (the “Personal Property”) stored in a building located on Gardner Drive in Wilmington, North Carolina. During the first part of January, 1995, Lee Booth, acting on behalf of Aerospace, communicated with Airway in order to obtain a quotation from Airway as to the cost of moving the Personal Property to another location.

On or about January 10, 1995, Airway submitted a written proposal to Aerospace which quoted a charge of $4,500.00 for “packing, loading, transportation to Airway premises and one month of storage based on needing *335 five trailers to contain the items.” The estimate from Airway specifically stated that it was “just an estimate” and that the final figures could vary “depending on the actual packing and loading and amount of trailers needed to perform all work needed.” On January 10, 1995, or within a day or two thereafter, Mr. Booth, on behalf of Aerospace, signed and accepted the January 10, 1995 proposal from Airway.

At the time that the proposal was prepared, the parties were proceeding on the basis of Airway supplying the five trailers. Subsequent to the submission of the written proposal the parties decided that the trailers required to haul the personal property would be supplied by Fredrickson and that Fre-drickson would transport the personal property to Greensboro in its trailers after the trailers had been loaded by Airway without the loaded trailers being stored at the Airway premises in Wilmington.

On January 16, 1995, which was the Monday following the January 10, 1995 proposal, Airway sent its employees to the building on Gardner Drive and began packing the Personal Property in containers supplied by Airway, which containers were then placed in trailers which were brought to the Gardner Drive location by Fredrickson with the exception of several very large and heavy items which were placed on two flatbed trailers supplied by a rigger selected by Airway. This work continued until some time on Saturday of that week. Dining the course of the week, two of the Fredrickson trailers were filled with portions of the Personal Property and were taken from the Gardner Drive location to the Fredrickson terminal located in Wilmington. These two trailers had been delivered to the Gardner Drive location earlier in the week by Fredrickson employees and after being loaded were picked up by Fredrickson employees and taken to the Fredrickson terminal. During the course of the packing and loading, certain large items owned by Aerospace were placed on the two flatbed trailers supplied by the rigging company. Becáuse of the size and weight of these items, Airway arranged for the rigging company to perform the work involved in removing these items from the warehouse and placing these items on the two flatbed trailers.

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Cite This Page — Counsel Stack

Bluebook (online)
199 B.R. 331, 30 U.C.C. Rep. Serv. 2d (West) 933, 1996 Bankr. LEXIS 1217, 1996 WL 441823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-aerospace-technologies-inc-ncmb-1996.