Brickley v. Scattered Corp. (In re H & M Oil & Gas, LLC)

MEMORANDUM OPINION

BARBARA J. HOUSER, Bankruptcy Judge.

I. JURISDICTION, VENUE, AND STATUTORY AND

CONSTITUTIONAL AUTHORITY.797

A. Subject Matter Jurisdiction and Venue.798

B. Statutory Authority.798

C. Constitutional Authority.800

II. LEGAL ANALYSIS .800

A. Count 1: Breach of the DIP Agreement (Brickley v. Scattered).801

1. Scattered’s Failure to Fund the Disputed DIP Requests Was Not a

Breach of the DIP Agreement .801

a) The Disputed DIP Requests Were Not Made in Compliance

with the DIP Agreement.801

b) At the Time the Disputed DIP Requests Were Made, H & M

Was in Default Under the Terms of the DIP…