In re Arts Dairy, LLC

417 B.R. 495 (2009)

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In re Arts Dairy, LLC

United States Bankruptcy Court for the Northern District of Ohio
417 B.R. 495 (2009)

Facts

Arts Dairy, LLC (Arts) (debtor) filed a chapter 11 bankruptcy petition in April 2009. Arts operated a 1,250-cow dairy farm and continued to operate the dairy business as a debtor-in-possession after the bankruptcy petition. Arts’ bankruptcy filing listed Robert McComber (creditor) as an unsecured creditor with a noncontingent, liquidated, undisputed claim for $95,889.90. McComber’s claim arose out of an August 2008 agreement between McComber and Arts. Under that agreement, McComber was to deliver 300 acres of corn silage (i.e., cattle feed) to Arts, and Arts was to pay McComber in 12 monthly installments beginning in September 2008. McComber delivered the silage to Arts shortly after the agreement was executed, but McComber had not yet received full payment for the silage at the time that Arts filed for bankruptcy relief. McComber filed an adversary complaint seeking a declaration from the bankruptcy court that the corn-silage agreement was an executory contract, such that Arts would be required to assume or reject the agreement under 11 U.S.C. § 365.

Rule of Law

Issue

Holding and Reasoning (Speer, J.)

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