Source: https://openjurist.org/690/f2d/158/memorial-v-memorial
Timestamp: 2017-09-20 06:32:15
Document Index: 224487869

Matched Legal Cases: ['§ 1101', '§ 101', '§ 1126', '§ 82', '§ 82', '§ 1129']

690 F2d 158 Memorial Properties Inc Arkansas Cemetery Board v. Memorial Properties Inc P Roselawn Properties Inc Arkansas Cemetery Board | OpenJurist
690 F. 2d 158 - Memorial Properties Inc Arkansas Cemetery Board v. Memorial Properties Inc P Roselawn Properties Inc Arkansas Cemetery Board
690 F2d 158 Memorial Properties Inc Arkansas Cemetery Board v. Memorial Properties Inc P Roselawn Properties Inc Arkansas Cemetery Board
690 F.2d 158
9 Bankr.Ct.Dec. 1085
In re MEMORIAL PROPERTIES, INC., Debtor.
ARKANSAS CEMETERY BOARD, Appellant,
MEMORIAL PROPERTIES, INC., Debtor-Appellee.
Middleton P. Ray, Trustee.
In re ROSELAWN PROPERTIES, INC., Debtor.
ROSELAWN PROPERTIES, INC., Debtor-Appellee,
Both Memorial Properties, Inc. and Roselawn Properties, Inc. submitted reorganization plans in bankruptcy court pursuant to Chapter 11 of the Bankruptcy Code of 1979, 11 U.S.C. §§ 1101-74 (1979). Appellant Arkansas Cemetery Board (hereinafter Board) opposed both plans. The Board claimed that fees and fines owed to the fund under Arkansas law were "claims" of the Board within the meaning of 11 U.S.C. § 101(4) (1979).1 The bankruptcy court found that the fees and fines were not "claims" of the Board, and did not allow the Board to vote the amounts of the fees and fines with the unsecured creditors.2 Had the Board been allowed to vote, then the required two-thirds approval (11 U.S.C. § 1126(c) (1979)) would not have been met for the class of nonpriority, unsecured creditors.3 The bankruptcy court confirmed the plan, and the Board appealed to the district court, which affirmed. The Board now appeals to this court.
Arkansas law requires every cemetery to establish a permanent maintenance fund, the income from which can only be used for the general upkeep of the cemetery. Ark.Stat.Ann. § 82-426.13 (Supp. 1981). The statute requires that the cemetery deposit ten percent of the gross proceeds of each cash sale into the maintenance fund within 45 days of the sale. There are also provisions for installment sales. If a cemetery fails to make timely payments, then the Board is empowered to go to state court for a compliance order, and a fine of ten dollars per day until payment is made can be imposed by the Board. The Board then puts the payments into the cemetery's permanent maintenance fund.
(4) "claim" means-
The bankruptcy court found that the Board had a right to payment for $100.00 in fees and $7,319.32 for audit costs pursuant to Ark.Stat. §§ 82-426.19 and 82-426.20 (Supp. 1981)
The bankruptcy court might have approved the plans even if the Board had been permitted to vote the claims and vote against the reorganization under the "cram down" provision of 11 U.S.C. § 1129(a)(7)(A)(ii)