In re Grubb & Ellis Co., 478 B.R. 622 (Bankr. S.D.N.Y. 2012) –
Real estate agents who worked for Grubb & Ellis Co. prior to its bankruptcy sought allowance of their claims for commissions as an administrative expense. Grubb & Ellis addresses the question of whether a commission due for a sale that closes post-petition where the buyer was procured prepetition is entitled to treatment as an administrative expense.
Section 503(b)(1)(A) of the Bankruptcy Code describes administrative expenses as including "the actual, necessary costs and expenses of preserving the estate, including – (i) wages, salaries, and commissions for services rendered after the commencement of the case." Classification as an administrative expense is beneficial because generally administrative expenses are entitled to payment before unsecured claims are...
