Tuesday, November 1, 2011
District Court in Tampa Weighs in on Individual Absolute Priority Rule.
The District Court for the Middle District of Florida Tampa Division has ruled on the absolute priority rule and its application to individual chapter 11 cases. The Honorable Judge Susan C. Bucklew wrote in SPCP Gourp, LLC v. James John Biggins 2011 U.S. Dist. LEXIS 107728 that the absolute priority rule did not apply in individual chapter 11 cases. The Judge stated the language is clear that the absolute priority rule was to be removed during the amendments to the code. The Judge did put in a footnote regarding In re Gelin stating that Gelin had different facts from the case before her. However that does not take away from the ruling that the APR does not apply to individual chapter 11 cases. This is the first district court case in Florida to deal with the issue. While it may not be binding in your particular district it sure is heavily persuasive. Finally a counter for the much discussed In re Gelin (and at a higher level court)!