Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca8-05-01589/USCOURTS-ca8-05-01589-0/pdf.json

Parties Involved:
Bob Curtis Enterprises
Appellant
Robert W. Curtis
Appellant
Outsourcing Solutions
Appellee
RWC Consulting
Appellee
Union Financial Services Group
Appellee

Document Text:

United States Court of Appeals

FOR THE EIGHTH CIRCUIT

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No. 05-1589

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In re: Union Financial Services

Group, Inc., et al.,

Debtors.

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Robert W. Curtis and Bob Curtis

Enterprises, Inc. (f/k/a RWC

Consulting, Inc.),

Appellants,

v.

Union Financial Services Group,

Inc., et al.,

Appellees.

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Appeal from the United States

District Court for the Eastern

District of Missouri.

[UNPUBLISHED]

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Submitted: November 16, 2005

 Filed: November 28, 2005 

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Before MURPHY, BOWMAN and GRUENDER, Circuit Judges. 

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PER CURIAM.

Appellate Case: 05-1589 Page: 1 Date Filed: 11/28/2005 Entry ID: 1979092
1

The Honorable Barry S. Schermer, United States Bankruptcy Judge for the

Eastern District of Missouri.

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Appellant Robert W. Curtis (“Curtis”) is the former president and sole

shareholder of Appellant Bob Curtis Enterprises, Inc. (f/k/a RWC Consulting Group,

Inc. (“RWC Inc.”)). In September 2000, Curtis sold the assets of RWC Inc. to

Outsourcing Solutions, Inc. (“OSI”), which later became one of the debtors in the

jointly administered Chapter 11 bankruptcy cases of Union Financial Services, Inc.,

et al. (the “Debtors”). Pursuant to the sale, OSI issued a Subordinated Promissory

Note dated September 29, 2000 (the “Seller Note”) made payable to RWC Inc. in the

principal amount of $5 million with a maturity date of September 29, 2003. 

The Debtors filed for bankruptcy relief on May 12, 2003. Curtis filed several

proofs of claim in the cases, asserting prepetition claim amounts arising from the

Seller Note. The joint plan of reorganization (the “Plan”) confirmed in the cases

provided that claims arising under the Seller Note were classed as general unsecured

claims for purposes of priority at distribution. The Appellants received notice of the

Plan and did not object to its terms. After the confirmation order became final, the

Debtors objected to several of Curtis’s proofs of claim and Curtis, in response, filed

a motion for payment of an administrative expense claim for essentially the same

amount as set forth in his proofs of claim. He posited that his claim had become a

postpetition administrative expense claim because it was actually part of an integrated

executory contract that was assumed by the Debtors pursuant to the Plan. Thus,

Curtis argued, he was entitled to full payment under Bankruptcy Code § 507(a). 11

U.S.C. § 507(a). The bankruptcy court1

 applied applicable Missouri law and

concluded that the Seller Note was not part of an integrated contract. The bankruptcy

court further determined that: (1) the Seller Note standing alone was not executory;

and (2) pursuant to the Seller Note, Curtis held an allowed general unsecured claim

Appellate Case: 05-1589 Page: 2 Date Filed: 11/28/2005 Entry ID: 1979092
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 The Honorable Donald J. Stohr, United States District Judge for the Eastern

District of Missouri.

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that was fully subordinated to the payment in full of all other claims. The Appellants

appealed to the district court,2

 which affirmed. 

Having carefully reviewed the record and considered the arguments on appeal,

we find no error in the bankruptcy court’s disposition of this matter, and we affirm.

See 8th Cir. R. 47B.

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Appellate Case: 05-1589 Page: 3 Date Filed: 11/28/2005 Entry ID: 1979092