PHAR-MOR, INC. v. McKESSON CORP.

Nos. 05-4525, 05-4526.

534 F.3d 502 (2008)

PHAR-MOR, INC., Appellant, v. McKESSON CORPORATION, Appellee.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: July 17, 2008.


Attorney(s) appearing for the Case

ARGUED: Timothy M. Reardon, Nadler, Nadler & Burdman Co., Youngstown, Ohio, for Appellant. Jeffrey K. Garfinkle, Buchalter Nemer, Irvine, California, for Appellee. ON BRIEF: Timothy M. Reardon, Michael A. Gallo, Nadler, Nadler & Burdman Co., Youngstown, Ohio, for Appellant. Jeffrey K. Garfinkle, Buchalter Nemer, Irvine, California, for Appellee.

Before: BATCHELDER, Circuit Judge; BUNNING, District Judge.


OPINION

ALICE M. BATCHELDER, Circuit Judge.

At issue in this bankruptcy case is whether a vendor's administrative-expense priority on its reclamation claim is effectively extinguished when the goods subject to reclamation are sold and the proceeds used to satisfy a secured creditor's superior claim. Because we hold that it is not, we AFFIRM the district court's decision.

I.

Phar-Mor, Inc. filed Chapter 11 bankruptcy on September 24, 2001...

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