In Re Microwave Products of America, Inc.
Joseph Scallon, former president of Microwave Products of America (MPA), sought payment for post-petition salary and expenses as an administrative claim after MPA filed for bankruptcy. He claimed extensive hours and travel costs for his services as president and CEO, along with two weeks of severance pay. Presiding Judge Bernice Bouie Donald meticulously scrutinized Scallon's application due to his fiduciary role. The court allowed a salary claim of $3,000 for one week of necessary services rendered to preserve the estate. However, Scallon's $6,000 severance pay claim was reclassified as a non-priority general unsecured claim, as it was deemed a gratuitous promise rather than a bargained-for or necessary expense. Additionally, $1,861.71 in post-petition expenses was allowed as a priority claim, contingent upon the submission of proper documentation to the U.S. Trustee and payment upon plan confirmation.