IN RE R.L. KELLY AND SONS, MILLERS

Bankruptcy Nos. 89-4-0193-SD, 89-4-0194-SD, 89-4-0452-SD and 89-4-0195-SD.

125 B.R. 945 (1991)

In re R.L. KELLY AND SONS, MILLERS, Debtor. In re Austin S. KELLY, Debtor. In re Earl L. KELLY, Debtor. In re Evelyn R. KELLY, Debtor.

United States Bankruptcy Court, D. Maryland, at Rockville.

March 14, 1991.


Attorney(s) appearing for the Case

Matthew C. Leefer, Frederick, Md., for Debtor.

Stephen K. Carper, Rockville, Md., for Terence B. Garvey, trustee for Austin, Earl and Evelyn Kelly.

Gary A. Rosen, Bethesda, Md., trustee for R.L. Kelly and Sons, Millers.

Gerard R. Vetter, Semmes, Bowen & Semmes, Baltimore, Md., for Manna Pro Corp.

Brooke Schumm, III, Miles & Stockbridge, Baltimore, Md., for Farmers and Mechanics Nat. Bank.

Michael J. Schwarz, Schwarz and Greenblatt, Baltimore, Md., for Wilmer and Joyce Hostetter.

Terence B. Garvey, Gaithersburg, Md., trustee for Austin, Earl and Evelyn Kelly.

Jason Green, Office of the U.S. Trustee, Rockville, Md.

R. Edwin Brown, Brown & Sturm, Rockville, Md., for Dickerson Land Co.

Fritz Schneider, Frank, Bernstein, Conaway & Goldman, Bethesda, Md., for James Mullinix.

Judith & Franklin Williams, Emmitsburg, Md.

Robert Kresslein, Stern & Kresslein, P.A., Frederick, Md.

Everett Moser, Middletown, Md.

Herbert O. Brown, Managing Gen. Partner, Dickerson Land Co., Dickerson, Md.

Charles Castle, Frederick, Md., for Robert Tregoning.

Joan Thomas, Chief Insolvency Unit, Sp. Procedures Unit, I.R.S., Baltimore, Md.

Malcolm B. Kane, Lloyd, Kane & Wieder, P.A., Ellicott City, Md., for Richard L. Pue.

Stephen M. Goldberg, Weinberg & Green, Baltimore, Md., for Thurmont Co-op., Inc.

Eddie Mercer, Inc., Frederick, Md.

Frank Winne & Sons, Inc., Philadelphia, Pa.


MEMORANDUM OF DECISION MODIFYING PARTNERSHIP TRUSTEE'S PROPOSED ORDER OF DISTRIBUTION AND GRANTING CERTAIN RELIEF AS TO PARTNER ESTATES

E. STEPHEN DERBY, Bankruptcy Judge.

The partnership trustee's proposed distribution raises issues of how secured claims should be allocated and prioritized among the Chapter 7 bankruptcy estates of a partnership and of its partners.

I. Facts.

R.L. Kelly and Sons, Millers, was a Maryland general partnership...

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