In Re Transcon Lines, Debtor. Leonard L. Gumport, Trustee of the Bankruptcy Estate of Transcon Lines v. Sterling Press

Gumport, in his capacity as trustee of the bankruptcy estate of Transcon Lines (Trans-con), appeals from the district court’s summary judgment in favor of Sterling Press (Sterling). The determinative issue in this case is whether certain antiforfeiture provisions of the Bankruptcy Code, 11 U.S.C. §§ 363 (i) and 541(c)(1)(B), prohibit the application of section 2 of the Negotiated Rates Act of 1993 (Rates Act), Pub.L. No. 103-180, 107 Stat. 2044 (partially codified at 49 U.S.C. § 10701 (f)), to a nonoperating motor carrier of freight in bankruptcy. The district court answered this question in the negative. It had jurisdiction pursuant to 28 U.S.C. § 1334 . We have jurisdiction over this timely appeal under 28 U.S.C. § 1291 . We affirm.

I

The operative facts of this case are not in dispute. Transcon was a motor common carrier of freight that provided transportation for compensation in interstate commerce. Transcon became a Chapter 7 debtor in bankruptcy in 1990 and is no longer transporting property. Sterling is a former customer of Transcon that shipped freight with Transcon in interstate commerce from May 21, 1987, to May 1, 1990, prior to Transcon’s bankruptcy filing. Gumport…