Mineralölhandelsgesellschaft MBH & Co. v. Commonwealth Oil Refining Co.

TATE, Circuit Judge:

This appeal arises from proceedings before the Bankruptcy Court under Chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 1121 et seq. The plaintiff (“Mineral”) filed an administrative priority claim based upon demurrage that Mineral, the seller, had been required to pay on a cargo of naphtha delivered to the debtor (“Commonwealth”) as buyer. The bankruptcy court disallowed substantially all of Mineral’s demurrage claim, finding that the disallowed demurrage represented charges attributable to Mineral’s fault. On Mineral’s appeal, the district court affirmed.

*1080Both parties…