Sullivan Hazeltine Allinson llc

Attorneys at Law

Bankruptcy Code Section 503(b)(9): Photos Are Not Goods

In a February 10, 2015 letter opinion in the CWC Liquidation Inc. f/k/a Coldwater Creek Inc.) bankruptcy case, Chief Judge Shannon of the United States Bankruptcy Court for the District of Delaware held that a photographer did not hold a priority claim under Section 503(b)(9) of the Bankruptcy Code for the value of photographs provided to the debtors within the 20 days prior to the bankruptcy filing.  Pursuant to the applicable contract, the photographer was required to provide photographer services and work product to the debtors.  Judge Shannon held that the photographer provided services, not goods, because (i) the contract referred to services to be provided on numerous occasions and (ii) the relationship between the parties was that of a service provider.