Kivitz v. CIT Group/Sales Finance, Inc.

MEMORANDUM

MOTZ, District Judge.

Mark R. Kivitz, the former attorney for the debtor (White Marlin Marine, Inc.), has appealed an order by the Bankruptcy Court declining to surcharge CIT’s collateral in order to pay fees for services performed by Kivitz to the debtor in a Chapter 11 case. The order will be affirmed. 1

I

As a general rule, administrative costs of a reorganization, including attorneys’ fees incurred in connection with efforts to reorganize the debtor, may not be charged against the collateral of a secured creditor. See In re Pullman Constr. Indus., Inc., 107 B.R. 909, 942 (Bankr.…