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Opinion 424

Case Name: 

In re Husting Land & Development

Judge: 
Judge Benson, U.S. District Court
Date: 
Jan-30-2002
Case Number(s): 
97B-20309
Status: 

APPEAL

Body: 

Determining first that the testimony of creditor's expert was inadmissable, and second, that the "creditor expectation" test was not satisfied, the bankruptcy court concluded that creditor's postpetition debt was not incurred in the ordinary course of business and, accordingly, creditor's claim could not be allowed as an administrative expense. The district court affirmed, basing its decision on the reasons set forth in the bankruptcy court's opinion and with these additional comments: (1) that the creditor expectation test is well supported and in furtherance of the purpose of chapter 11; (2) that the bankruptcy court's rulings were within its discretion and supported by the reasons articulated in its decision; and (3) that the proffered expert testimony concerning "ordinary course of business" was inadmissable because the opinion was based on the meaning of the law and the witness was not a legal expert and, in any event, testimony by a legal expert is neither common, nor proper in these proceedings.

Internal Ref: 
Opinion 424
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