New York State Electric & Gas Corp. v. McMahon

JOHN M. WALKER, Jr., Circuit Judge:

This ease presents two questions. First, whether the bankruptcy and district courts erred in declaring NYSEG’s post-petition application of debtor’s pre-petition utility deposit to the debtor’s pre-petition utility debt to be a setoff subject to the automatic stay of 11 U.S.C. § 362 instead of a recoupment not subject to the automatic stay. Second, whether the bankruptcy court abused its discretion in awarding the debtor actual damages under 11 U.S.C. § 362(h). We hold that NYSEG’s post-petition application of the pre-petition utility deposit to debtor’s…