In re Michigan Interstate Railway Co.

MEMORANDUM OPINION

STEVEN W. RHODES, Bankruptcy Judge.

I. Introduction

The law firm of Frasco, Hackett & Mills has filed a claim in the amount of $92,-269.20, for legal fees and expenses. Attorney Patrick E. Hackett filed-an additional claim in the amount of $3,279.00, for arbitration fees and expenses. Both claimants seek an equitable priority pursuant to 11 U.S.C. § 1171(b).1 The trustee has filed objections to claimants’ requests for priority treatment; the trustee does not object to the amounts of the claims.

The claimants contend that because the following three criteria are met, their…