IN RE CHARLESBANK LAUNDRY, INC.

No. 84-1138.

755 F.2d 200 (1985)

In re CHARLESBANK LAUNDRY, INC., Debtor. Shepard A. SPUNT, et al., Plaintiffs, Appellants, v. CHARLESBANK LAUNDRY, INC., et al., Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided February 25, 1985.


Attorney(s) appearing for the Case

Stuart DeBard and Weston, Patrick, Willard & Redding, Boston, Mass., on brief, for plaintiffs, appellants.

Janice L. Burnham and Looney & Grossman, Boston, Mass., on brief, for defendants, appellees.

Before CAMPBELL, Chief Judge, COFFIN and BOWNES, Circuit Judges.


COFFIN, Circuit Judge.

This case raises the interesting question whether a civil compensatory fine for violation of an injunction by a debtor corporation engaged in a Chapter 11 reorganization qualifies for first priority treatment as an administrative expense under 11 U.S.C. § 503(b)(1)(A) as "actual, necessary costs and expenses of preserving the estate."

In 1976 a number of Cambridge residents and one Spunt of Brookline instituted proceedings in Middlesex...

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