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Sportfame of Ohio, Inc. v. Wilson Sporting Goods, Co. (In re Sportfame of Ohio, Inc.)

40 B.R. 47 (1984)

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Sportfame of Ohio, Inc. v. Wilson Sporting Goods, Co. (In re Sportfame of Ohio, Inc.)

United States Bankruptcy Court for the Northern District of Ohio
40 B.R. 47 (1984)

  • Written by Philip Glass, JD

Facts

For 10 years, the wholesaler Wilson Sporting Goods Company (Wilson) (defendant) profitably shipped goods to the retailer Sportfame of Ohio, Inc. (Sportfame) (plaintiff), to the benefit of both parties. Sportfame voluntarily petitioned for Chapter 11 reorganization on February 14, 1983. Not long before Sportfame filed under Chapter 11, Wilson had discontinued shipments of sporting goods to Sportfame, as Sportfame fell into arrears. Around March and April of 1983, Wilson learned of Sportfame’s Chapter 11 petition and demanded that Sportfame either immediately satisfy its debts with Wilson or provide Wilson a plan for the future satisfaction of Sportfame’s debts. Otherwise, Wilson would continue to refuse to ship goods to Sportfame, causing Sportfame to incur business losses. In response, Sportfame moved for a permanent injunction against Wilson, contending that 11 U.S.C. § 362(a)(6) forbade Wilson’s collection attempts. Wilson alleged that it was not making a collection attempt. The issue came before the bankruptcy court.

Rule of Law

Issue

Holding and Reasoning (Krasniewski, J.)

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