Opinion ID: 504391
Heading Depth: 1
Heading Rank: 4

Heading: Simon's Additional Contentions

Text: 36 In addition to his contentions under section 327(a), Simon argues that nunc pro tunc approval is unnecessary because he is entitled to a fee for his brokerage services under either section 327(b) or 503(b)(1)(A) of Chapter 11 of the Bankruptcy Code, 11 U.S.C. Secs. 327(b), 503(b)(1)(A) (Supp. IV 1986). 10 We find both provisions inapplicable. Simon does not fall within section 327(b) 11 because he was not a regularly employed ... professional person[ ] on salary. 37 We likewise reject Simon's argument under section 503(b)(1)(A) of the Code, which permits priority payment as an administrative expense of the actual, necessary costs and expenses of preserving the estate, including wages, salaries, or commissions for services rendered after the commencement of the case. 11 U.S.C. Sec. 503(b)(1)(A). Section 503(b)(1)(A) encompasses costs such as outlays for repairs, upkeep, rent, taxes and other costs incidental to protection and conservation of the estate. 3 L. King, supra, para. 503.04, at 503-20. 38 The authority to pay administrative expenses for professionals, and a real estate broker, like an attorney, is a professional, is found not in section 503(b)(1)(A) but in section 503(b)(2) which permits payment as an administrative expense for compensation and reimbursement awarded under section 330(a). Section 330(a), in turn, empowers the court to award reasonable compensation to, inter alia, a professional person employed under section 327. Because Simon is a professional person who was hired to assist the [debtor-in-possession] in carrying out the [debtor-in-possession's] duties, see 11 U.S.C. Sec. 327(a), and he failed to comply with that section's requirement to obtain prior approval of his appointment, he cannot rely on section 503(b)(1)(A) as a way of circumventing section 327(a). See In re Mansfield Tire & Rubber Co., 65 B.R. 446, 465-66 (Bankr.N.D.Ohio 1986). If Simon were able to be compensated under section 503(b)(1)(A), it would render section 327(a) nugatory and would contravene Congress' intent in providing for prior approval. 12