In Re Lawrence United Corporation, 221 B.R. 661 (1998)

David Lawrence Ganje

Case Conclusion Date:June 10, 1998

Practice Area:Bankruptcy / Debt

Outcome:The court granted the purchaser's motion to compel.

Description:The agent had been the insurance agent for the insurance company. Subsequent to filing Chapter 11 bankruptcy, the agent sold its office assets to the purchaser. After the sale occurred, the insurance company refused to turnover the commissions it had previously owed to the agent covered by the order, prompting the purchaser to file the motion. The court held that the matter was a core proceeding under 28 U.S.C.S. § 157 because the matter concerned the court's own order and arose in a case under Title 11. The court found that the insurance company did not have an "interest" for purposes of 11 U.S.C.S. § 363(f). The court further found that the insurance company did not have a right of recoupment against the commissions earned postpetition, thus, it also did not have a legitimate defense to the purchaser's motion to enforce the order. The court cautioned the parties, however, that its determination only covered commissions related to the agent's business operation that was sold to the purchaser because any commissions owed to the agent because of the agency agreement covering the agent's other business operation were not covered by the order.