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Happy Jack's Petroleum, Inc.

COURT
Nebraska Bankruptcy Court
CASE NUMBER
4:16-bk-41395
TYPE / CHAPTER
Voluntary / 7

Filed

9-16-16

Updated

10-7-20

Last Checked

11-2-20

Assets

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Liabilities

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Docket

Last Updated
Nov 2, 2020
Last Entry Filed
Oct 6, 2020

Docket Entries by Year

There are 359 older docket entries.

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Oct 27, 2019 350 Comment of the United States Trustee Pursuant to 28 U.S.C. § 586(a)(3)(A). The Office of U.S. Trustee has reviewed the Application and reports to the Court that it has no objection to the approval of the fees and expenses requested. The U.S. Trustee reserves the right to comment on or object to any future interim or final fee applications. (RE: related document(s)349 Application for Compensation filed by Trustee Philip M. Kelly, Accountant Bruce E. Schreiner) (Jensen, Jerry) (Entered: 10/27/2019)
Nov 6, 2019 351 Motion for Disgorgement Filed by Creditor Hansen's Petroleum Products 9013 Objections due by 11/27/2019. (Quinn, Douglas) (Entered: 11/06/2019)
Nov 6, 2019 352 Objection to Final Interim Application for Allowance of Compensation to CPA Filed by Creditor Hansen's Petroleum Products (RE: related document(s)349 Application for Compensation filed by Trustee Philip M. Kelly, Accountant Bruce E. Schreiner) (Quinn, Douglas) RE-FILED, SEE ENTRY 354. Modified on 11/6/2019 (kks). (Entered: 11/06/2019)
Nov 6, 2019 353 Notice Pursuant to Neb. R. Bankr. P. 9013-1 by Douglas E. Quinn Filed by Creditor Hansen's Petroleum Products (RE: related document(s)351 Generic Motion filed by Creditor Hansen's Petroleum Products) 9013 Objections due by 11/27/2019. (Quinn, Douglas) (Entered: 11/06/2019)
Nov 6, 2019 354 Objection to Professional Fees Filed by Douglas E. Quinn on behalf of Hansen's Petroleum Products . (RE: related document(s)349 Application for Compensation filed by Trustee Philip M. Kelly, Accountant Bruce E. Schreiner) CORRECTIVE ENTRY: ORIGINALLY, THE INCORRECT EVENT WAS USED. THIS ENTRY REPLACES 352. (kks) Modified on 11/6/2019 (kks). (Entered: 11/06/2019)
Nov 12, 2019 355 Hearing Set On (RE: related document(s)349 Final Application for Compensation for Bruce E. Schreiner, Accountant, Filed by Trustee Philip M. Kelly, 354 Objection to Professional Fees filed by Creditor Hansen's Petroleum Products). Hearing scheduled for 11/25/2019 at 10:00 AM at Omaha Courtroom-Telephonic Hearing. (law) (Entered: 11/12/2019)
Nov 25, 2019 356 Order Approving Final Application for Allowance of Compensation to CPA (Related Doc # 349). Hearing held on November 25, 2019. Philip Kelly, Chapter 7 Trustee, appeared. Doug Quinn appeared for Hansens Petroleum Products. The final application is approved. However, the trustee shall not pay this or any other administrative claim until the pending Motion for Disgorgement is resolved. ORDERED by Judge Thomas L. Saladino (Text Only Order) (law) (Entered: 11/25/2019)
Nov 26, 2019 357 Objection to Hansen's Petroleum Products, Inc.'s Motion for Disgorgement Filed by Trustee Philip M. Kelly (RE: related document(s)351 Generic Motion filed by Creditor Hansen's Petroleum Products) (Overcash, James) (Entered: 11/26/2019)
Nov 27, 2019 358 Support Document Re: Objection to Motion for Disgorement Filed by Zachary W Lutz-Priefert on behalf of Happy Jack's Petroleum, Inc.. (Lutz-Priefert, Zachary) RE-FILED, SEE ENTRY #360. Modified on 11/27/2019 (kks). (Entered: 11/27/2019)
Nov 27, 2019 359 Resistance Filed by Creditor Adams Bank & Trust (RE: related document(s)351 Generic Motion filed by Creditor Hansen's Petroleum Products) (Reynolds, Robert) (Entered: 11/27/2019)
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Jan 8, 2020 370 PDF with attached Audio File. Court Date & Time [ 1/6/2020 11:21:09 AM ]. File Size [ 7713 KB ]. Run Time [ 00:32:08 ]. (CRTclerk). (Entered: 01/08/2020)
Jan 28, 2020 371 Declaration of Susan Hansen in Support of Hansen's Petroleum Products Motion for Disgorgement. Filed by Douglas E. Quinn on behalf of Hansen's Petroleum Products. (RE: related document(s)351 Generic Motion filed by Creditor Hansen's Petroleum Products) (Quinn, Douglas) (Entered: 01/28/2020)
Jan 28, 2020 372 Order Taking Under Advisement (RE: related document(s)351 Motion for Disgorgement filed by Creditor Hansen's Petroleum Products). The matter is taken Under Advisement. ORDERED by Judge Thomas L. Saladino (Text Only Order) (law) (Entered: 01/28/2020)
Jan 28, 2020 373 Affidavit of Philip Kelly in Support of Objection to Motion for Disgorgement. Filed by Philip M. Kelly on behalf of Philip M. Kelly. (RE: related document(s)357 Objection filed by Trustee Philip M. Kelly) (Kelly, Philip). LINKAGE CORRECTED. Modified on 1/29/2020 (kks). (Entered: 01/28/2020)
Jan 30, 2020 374 Order Denying (RE: related document(s)351 Motion for Disgorgement filed by Creditor Hansen's Petroleum Products). Hansen's had the opportunity to object to the bank's arrangement with the trustee. It failed to do so. In fact, in response to a motion by the trustee to make a partial distribution of some of the funds generated under the trustee's agreement with the bank, Hansen's went so far as to say that "it has no objection to the payment of the trustee's fees as requested" in the motion (Fil. #246). In sum, Hansen's has failed to articulate any legal right or claim to the funds it seeks to have disgorged by the Chapter 7 administrative claimants. There is simply no basis now to disturb the court-approved arrangement between the trustee and Adams Bank, or the payments made thereunder. Accordingly, the motion for disgorgement should be denied as to the Chapter 7 administrative expenses.

To be clear, this Court is not saying that a cause of action for disgorgement may never exist. In fact, caselaw from this jurisdiction indcates that such a cause of action may exist under appropriate circumstances. See, Stumpf v. Creel & Atwood, P.C. (In re Lockwood Corp.), 216 B.R. 628, 636-37 (Bankr. D. Neb. 1997). Instead, this ruling is based on the unique facts and circumstances of this case. It simply would be inequitable to allow Hansen's to come in at this late stage to seek disgorgement of duly earned fees from estate professionals. Hansen's had the ability to control this outcome. It could have stopped supplying fuel as soon as debtor defaulted on payment terms. That would have greatly reduced the claim of Hansens. It also could have objected to payment of administrative claims as soon as it knew that the debtor was not in compliance with payment terms. It did not do those things. Hansen's took a risk that the debtor would successfully reorganize. It gambled and lost. Therefore, the motion for disgorgement should be denied as to the Chapter 11 administrative expenses.

IT IS ORDERED: Hansen's Petroleum Products, Inc.'s motion for disgorgement (Fil. No. 351) is denied. ORDERED by Judge Thomas L. Saladion. (See pdf Written Opinion in its entirety)

Search terms: administrative expenses; super-priority claim; 11 U.S.C. § 364(c)(1); 11 U.S.C. § 503(b); 11 U.S.C. § 507(b); 11 U.S.C. § 506(c); disgorgement (drs) (Entered: 01/30/2020)
Jan 30, 2020 375 Order Denying Motion for Disgorgement Filed by Creditor Hansen's Petroleum Products (Related Doc # 351), see Written Opinion entered this day. ORDERED by Judge Thomas L. Saladino. (Text only order) (drs) (Entered: 01/30/2020)
Feb 11, 2020 376 Fourth Application for Fees & Expenses for James Overcash, Special Counsel, Fee: $3,391.50, Expenses: $357.65. Filed by Attorney James Overcash 9013 Objections due by 3/3/2020. (Overcash, James) (Entered: 02/11/2020)
Feb 24, 2020 377 Application for Compensation for Philip M. Kelly, Trustee's Attorney, Fee: $3149.00, Expenses: $698.25. Filed by Trustee Philip M. Kelly 9013 Objections due by 3/17/2020. (Kelly, Philip) (Entered: 02/24/2020)
Mar 4, 2020 378 Order Approving Fourth Application for Fees & Expenses for James Overcash, Special Counsel, Filed by Attorney James Overcash (Related Doc # 376). Approving for James Overcash, fees awarded: $3391.50, expenses awarded: $357.65. The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is approved. Movant is responsible for giving notice to parties in interest as required by rule or statute. ORDERED by Judge Thomas L. Saladino (Text only order) (law) (Entered: 03/04/2020)
Mar 17, 2020 379 Comment of the United States Trustee Pursuant to 28 U.S.C. § 586(a)(3)(A). The Office of U.S. Trustee has reviewed the Application and reports to the Court that it has no objection to the approval of the fees and expenses requested. The U.S. Trustee reserves the right to comment on or object to any future interim or final fee applications. (RE: related document(s)377 Application for Compensation filed by Trustee Philip M. Kelly) (Jensen, Jerry) (Entered: 03/17/2020)

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Case Information

Court
Nebraska Bankruptcy Court
Case number
4:16-bk-41395
Assets
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Liabilities
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Judge
Thomas L. Saladino
Chapter
7
Filed
Sep 16, 2016
Type
voluntary
Terminated
Oct 6, 2020
Converted
Sep 5, 2017
Updated
Oct 7, 2020
Last checked
Nov 2, 2020

Associated Cases

    Creditors

    Subscribe now or purchase this single case to see the full creditors list.
    Adams Bank & Trust
    Allen, Scott
    Alworth, Jim
    Ansley, Denny
    Ascentium Capital
    Baerg, Barry
    Baumann Enterprises
    Baumann, Loy
    Beckius, Bernard
    Beckius, Carl
    Beckman, Joyce
    Belsan, Jay
    Benge, Jerry
    Bishop, Gaylord
    Boehs, John
    There are 125 more creditors. Subscribe now or purchase this single case to see the full creditors list.

    Parties

    Debtor

    Happy Jack's Petroleum, Inc.
    P.O. Box 130
    Brule, NE 69127
    KEITH-NE
    Tax ID / EIN: xx-xxx3920
    dba Happy Jack's
    dba Happy Jack's C Store
    dba Happy Jack's Travel Stop

    Represented By

    William L. Biggs, Jr.
    Gross & Welch
    2120 So. 72 St.
    1500 Omaha Tower
    Omaha, NE 68124
    (402) 392-1500
    Fax : (402) 392-8101
    Email: bbiggs@grosswelch.com
    Zachary W Lutz-Priefert
    Gross & Welch
    1500 Omaha Tower 2120 S 72nd
    Omaha, NE 68124
    (402) 392-1500
    Email: zlutzpriefert@grosswelch.com,
    Frederick D. Stehlik
    Gross & Welch, PC
    2120 So 72nd St
    1500 Omaha Tower
    Omaha, NE 68124-2342
    (402) 392-1500
    Fax : (402) 392-8101
    Email: fstehlik@grosswelch.com

    Trustee

    Philip M. Kelly
    Chapter 7 Trustee
    PO Box 419
    105 E. 16th Street
    Scottsbluff, NE 69363-0419
    (308) 632-7191

    Represented By

    Philip Kelly
    Douglas, Kelly, Ostdiek, Snyder, Ossian, Vogl and Snyder, P.C.
    105 E. 16th Street
    P.O. Box 419
    Scottsbluff, NE 69363-0419
    308-632-7191
    Fax : 308-635-1387
    Email: pkelly@scottsblufflaw.com
    Philip M. Kelly
    Chapter 7 Trustee
    PO Box 419
    105 E. 16th Street
    Scottsbluff, NE 69363-0419
    (308) 632-7191
    Email: pmktrustee@scottsblufflaw.com
    James Overcash
    Woods & Aitken, LLP
    301 South 13th Street, Suite 500
    Lincoln, NE 68508
    (402) 437-8519
    Fax : (402) 437-8558
    Email: jovercash@woodsaitken.com
    James A. Overcash
    James A. Overcash,Trustee
    301 South 13th Street, Ste 500
    Woods Aitken LLP
    Lincoln, NE 68508
    402-437-8500
    Email: trustee@woodsaitken.com

    U.S. Trustee

    Jerry Jensen
    Acting Assistant UST
    U.S. Trustee's Office
    111 South 18th Plz, Suite 1148
    Omaha, NE 68102

    Represented By

    Jerry L. Jensen
    Assistant U.S. Trustee
    U.S. Trustee's Office
    111 S. 18th Plaza, Suite 1148
    Omaha, NE 68102
    (402) 221-4302
    Email: Jerry.L.Jensen@usdoj.gov

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