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Note: Griffin Trading Company (Debtor) voluntarily petitioned for protection under Chapter 7 (liquidation) of the U.S. Bankruptcy Code. Trustee sued Roger and Farrel Griffin (Debtor's Principals) who were ordered to pay US$4,690,071 to Trustee. When Debtor's Principals appealed, Trustee agreed to the stay execution conditioned on Debtor's Principals obtaining two standby letters of credit for $2,412,58 each to assure payment of the judgment in the event that the appeal was unsuccessful. After four years, the final appeal was decided in favor of Debtor's Principals who moved to recover $196,000 reimbursement for costs of maintaining the letters of credit and other court costs. The United States Bankruptcy Court, Northern Division Illinois, Eastern Division, Black, J., denied the motion.

Court costs were uncontested and Debtor's Principals claim that if any costs are awarded, Local Rule 7054(b) applies and maintenance costs should be awarded as well. This claim was rejected and the court ruled that Local Rule 7054 does not apply when taken in conjunction with case law, Federal Rules of Civil Procedure, and Federal Law.

[JEB/njh]

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