Engstrum & Nourse-Stolte v. E.C. Ernst, Inc. (In re E.C. Ernst, Inc.)
E.C. Ernst, Inc. (Ernst), a debtor-in-possession in a Chapter XI bankruptcy proceeding, entered into a subcontract with Engstrom & Nourse-Stolte (ENS) for electrical work. After Ernst filed for bankruptcy, a Supplemental Agreement allowed Ernst to continue the project. ENS later filed a Proof of Claim for expenses, which Ernst moved to expunge or allow only as a general unsecured claim. Both parties filed cross-motions for summary judgment regarding the priority of ENS's claim and the interpretation of their agreements. Additionally, Ernst sought to expunge ENS's claim for failure to produce documents. The court denied both motions for summary judgment, citing disputes over the intent behind the Supplemental Agreement and potential breach of contract, and directed ENS to comply with document production.