Case Summary:
The United States Trustee (“UST”) appealed this Court's decision disallowing the administrative claim of the UST in regard to certain payments made by the Debtor, Cranberry Growers Cooperative, on a direct revolver loan. In that decision, the Court found certain payments were not “disbursements” subject to the UST quarterly fee under 28 U.S.C. § 1930(a)(6). Appeals of bankruptcy court final orders are heard by the District Court, unless the bankruptcy court certifies the order for direct review to the Seventh Circuit under 28 U.S.C. § 158(d)(2). To certify a final order for direct review, the bankruptcy court must certify that the order meets at least one of the following criteria: (1) the order involves a question of law as to which there is no controlling precedent in the Court of Appeals or Supreme Court; (2) the order involves a matter of public importance; (3) the order requires resolution of conflicting decisions; or (4) an immediate appeal to the Court of Appeals may materially advance the case. Here, the Court found all four to be present. UST quarterly fees impact Chapter 11 cases across the country. In addition, there is no precedent in the Seventh Circuit or Supreme Court on how to interpret the term “disbursement” while calculating UST fees, and courts within the Seventh Circuit have ruled inconsistently on what constitutes a “disbursement.” Finally, the Court found an immediate appeal to the Seventh Circuit would materially advance the progress of the case, as any decision by the District Court would likely have been appealed.

Statute/Rule References:
28 U.S.C. § 158(d)(2) -- Appeals
28 U.S.C. § 1930(a)(6) -- Bankruptcy Fees
Fed. R. Bankr. P. 8006(e)(1) -- Certification on the Court’s Own Motion

Key Terms:
Appeals
Direct Review
Disbursement
UST Quarterly Fee