Menu    1 ABR 351 

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ALASKA


In re: )
)
JOHN F. MITCHELL d/b/a ) Case No. A90-00019
Western Alaska Brokerage Co. ) Chapter 7
d/b/a F/V Rising Sun, )
)
Debtor.           )
_____________________________________)

ORDER DENYING § 506(c) COSTS

        John F. Mitchell (Mitchell) filed a chapter 7 petition on January 8, 1990. Kenneth Battley was appointed trustee. Among the assets of this estate was the fishing vessel Rising Sun. The listed value of the F/V Rising Sun was $35,000 and the amount of the secured claim of Francis Coxen was nearly $40,000. Coxen's attorney Teske, contacted the trustee and informally requested release of the vessel in March of 1990. The trustee believed the claim of Coxen may not have been properly perfected, desired more value information, and did not allow release of the boat.

        On June 23, 1990 Trident Seafoods threatened to place the boat in the ocean and off their premises unless it was removed within 24 hours. Mitchell, at the request of the trustee, removed the vessel, floated it to a new location, paid a $100.00 tow fee, $1,500.00 for one year of indoor storage and $731.59 for insurance on the vessel. He wants to recover his costs from Coxen, the secured creditor. Mitchell also seeks reimbursement of costs for storage and insurance from January through April of 1990.

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11 U.S.C. § 506(c) provides:

        The trustee may recover from property securing an allowed secured claim the reasonable, necessary costs and expenses of preserving, or disposing of, such property to the extent of any benefit to the holder of such claim.


        Here costs and expenses are requested by John Mitchell, a chapter 7 debtor. He is neither a trustee nor a debtor-in- possession. He has no standing to pursue a § 506(c)claim. In re Palomar Truckinq Corporation, 116 B.R. 169 (9th Cir. BAP 1990). While I would prefer a more liberal rule, I will follow the bankruptcy appellate panel precedent. John Mitchell's motion for reimbursement of costs is denied.


       DATED:    January 31, 1991.


                DONALD MacDONALD IV
                United States Bankruptcy Judge


Serve: D. Rankine, Esq. (for Debtor)
W. Artus, Esq. (for Trustee)
A. Ginster, Esq. (for Francis Coxen)
K. Battley, Trustee
U.S. Trustee