Rushton v. Saratoga Forest Prods, Inc. (In re Americana Expressways, Inc.), 172 B.R. 99 (Bankr.D.Utah)
PUBLISHED
This matter came before the court on two motions for summary judgment by the chapter 7 trustee, which challenged both applicability of the Negotiated Rates Act of 1993 ("NRA") and the constitutionality of the NRA itself. Trustee sought to recover over $2.9 million in freight undercharge claims from the defendant and other shippers, and application of NRA terms to those claims would result in the loss of the vast bulk of the estate's claims. The court determined that such retroactive elimination of the property rights of trustee and the estate's creditors would be more similar to a complete taking of legal rights than to simple "regulation." The court expressed serious doubt as to the NRA's constitutionality if such an interpretation of it was imposed. However, the court found that the NRA could be interpreted in a way that avoided that constitutional challenge. Thus, the property rights of an estate in bankruptcy are defined by bankruptcy law as of the commencement of the bankruptcy case. Bankruptcy law remains the law of the case unless expressly changed by Congress. In section 9 of the NRA, Congress specifically provided that the NRA would not limit or otherwise affect Title 11 of the United States Code. Accordingly, the court held that the freight undercharge claims asserted by trustee were unaffected by the NRA's provisions.