Gumport

Gumport v. Interstate Commerce Commission (In re Transcon Lines)

Good Law
178 B.R. 228·1995 Bankr. LEXIS 530
United States Bankruptcy Court, Central District of CaliforniaFebruary 1, 1995Bankruptcy No. 93-22207-DN; Adv. No. 92-04510California4,275 words

Opinion

Lead Opinion

Riblet, J.

MEMORANDUM DECISION

Leonard Gumport, chapter 7 trustee of the estate of Transcon Lines, has brought a motion under the Equal Access to Justice Act, 28 U.S.C. § 2412 (d), seeking to recover attorney’s fees and costs incurred in litigating the legality of certain regulations issued by the Interstate Commerce Commission. Based upon the following discussion, the court finds the award of fees appropriate under the circumstances of this case.

I. FACTS

Prior to bankruptcy Transcon Lines (“Transcon”) operated a large interstate trucking business. On May 1,1990, an involuntary petition was filed against Transcon by certain of its pension funds. On May 21, 1990, Transcon consented to the entry of an order for relief under chapter 11. Leonard Gumport was appointed chapter 11 trustee in June, 1990, and upon his request the case was converted to chapter 7 on July 10, 1990. Gumport was appointed chapter 7 trustee on July 17, 1990.

Gumport promptly set about collecting what he perceived to be the primary assets of the Transcon estate, i.e., claims for unpaid freight charges and claims for undercharges allowed by Transcon in violation of the filed rate doctrine which requires that regulated…

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