Young v. Condor Systems, Inc. (In Re Condor Systems, Inc.)
United States Bankruptcy Appellate Panel for the Ninth Circuit
1Opinion of the Court
OPINION
KLEIN, Bankruptcy Judge.
This is an appeal from an order rejecting former employees’ termination damages claims. The bankruptcy court reasoned that draws on irrevocable letters of credit and prepetition severance payments reduced the 11 U.S.C. § 502(b)(7) cap on allowable claims of terminated employees. We hold that the § 502(b)(7) cap is calculated mechanically as of the date of the filing of the petition and that prepetition severance payments and pre- and postpetition draws on letters of credit may affect the amount of the claim but not the § 502(b)(7) cap. We REVERSE and REMAND.
FACTS
2Cases cited10 opinions
- Walters v. Metropolitan Educational Enterprises, Inc.Supreme Court of the United States · 1997
- Oldden v. Tonto Realty CorporationCourt of Appeals for the Second Circuit · 1944
- P.A. Bergner & Co. v. Bank One, Milwaukee, N.A. (In re P.A. Bergner & Co.)Court of Appeals for the Seventh Circuit · 1998
- Mason v. Official Committee of Unsecured Creditors Ex Rel. FBI Distribution Corp. (In Re FBI Distribution Corp.)Court of Appeals for the First Circuit · 2003
- Meyer v. Hill (In Re Hill)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2001
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- In re AB Liquidating Corp.Court of Appeals for the Ninth Circuit · 2005
- In Re Connectix Corp.United States Bankruptcy Court, N.D. California · 2007
- Lariat Companies, Inc. v. Barbara WigleyCourt of Appeals for the Eighth Circuit · 2021
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