Giacinti
Giacinti v. Westinghouse Credit Corp. (In re Coast Packing Material Co.)
Opinion
Lead Opinion
Hargrove, J.
MEMORANDUM DECISION
At issue is whether petitioning unsecured creditors in an involuntary Chapter 7 case impliedly consent to the payment of reasonable trustee’s fees where there are no unencumbered assets available for distribution.
The issue arises on the motion of plaintiff Philip J. Giacinti Jr., trustee (“trustee”) for summary judgment. Trustee contends that petitioning creditors in an involuntary petition for relief under Chapter 7 impliedly consent to the payment of trustee’s fees, and therefore are personally liable for the payment of trustee fees if the estate is insolvent.
This court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and § 157(b)(1) and General Order No. 312-D of the United States District Court, Southern District of California. This is a core proceeding pursuant to 28 U.S.C. § 157 (b)(2)(A).
FACTS
This court finds that the following facts are undisputed by the evidence presented.
On November 17, 1980, an involuntary petition was filed against Coast Packing *411 Material Company (“Coast”) by unsecured creditors Harold Nelson, Nelson Enterprises, and Harold Nelson as trustee and administrator of the Coast Packing Material Corporation…