Furr's Supermarkets, Inc.

UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW MEXICO
PACER Cover Sheet
for Electronically Filed Documents
Any data shown here are current as of 	. Any element of information on this form,
except the received date, is subject to change as changes may be made to the Court's official docket.
Case Title:
Case Number:
Document Information
Description:
Date Filed:
Date Entered On
Docket:
Filer Information
Submitted By:
If this form is attached to the document identified above, it serves as an endorsed copy of the
document as it existed on the above date. To confirm that nothing has changed since then,
review the docket.
06/10/06
Furr's Supermarkets, Inc.
01-10779
Findings of Fact and Conclusions of Law Re: [2797-1] Objection To Claim filed by
Trustee Yvette Gonzales to Claim of Pat S. Valdez; Claim Number 1266 in the
amount of $500,000.00 by Yvette Gonzales .
Received on: 2005-09-01 13:38:16.000
2005-09-01 00:00:00.000
2005-09-06 00:00:00.000
James Burke
Case 01-10779-nlj7 Doc 3137 Filed 09/01/05 Entered 09/06/05 10:48:00 Page 1 of 4

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW MEXICO
In re:
FURRS SUPERMARKETS, INC.
Debtor. No. 11-01-10779 SA
FINDINGS AND CONCLUSIONS AND ORDER
SUSTAINING CHAPTER 7 TRUSTEE’S OBJECTION
TO PAT VALDEZ’S CHAPTER 11 ADMINISTRATIVE CLAIM
This matter is before the Court on the Chapter 7
Trustee’s Objection to Pat Valdez’s Chapter 11 Administrative
Claim (doc. 2797). The parties submitted briefs (docs. 3031
and 3058). The facts are not disputed, and the Court finds
that the objection is well taken.
FACTS
Pat Valdez (“Valdez”) was a Furr’s employee and was
terminated on or about April 16, 1998. Shortly thereafter,
his union demanded that he be reinstated. Furr’s did not
reinstate Valdez. In early 1999 the union wrote to Furr’s
asking it to rehire Valdez if there were any available
positions. Furr’s did not rehire Valdez. On February 8,
2001, Furr’s filed a Chapter 11. On May 29, 2003, Valdez
filed an administrative claim for $500,000 for wrongful
termination and wrongful failure to rehire.
CONCLUSIONS OF LAW
Valdez has a prepetition claim. Nat’l Labor Relations
Bd. v. Greyhound Lines, Inc. (In re Eagle Bus Mfg., Inc.), 158
Case 01-10779-nlj7 Doc 3137 Filed 09/01/05 Entered 09/06/05 10:48:00 Page 2 of 4

Page -2-
B.R. 421, 433-34 (S.D. Tex. 1993)(Employment claim for unfair
labor practices arose from prepetition conduct and was a pre-
petition claim; the fact that damages continued to accrue
post-petition did not alter the character of the claim
itself.)
Section 503 governs the award of administrative expenses.
Valdez’s prepetition claim does not fit into any category in
section 503. Compare Section 503(b)(1)(A) (the actual,
necessary costs and expenses of preserving the estate,
including wages for services rendered after the commencement
of the case). See also Isaac v. Temex Energy, Inc. (In re
Amarex, Inc.), 853 F.2d 1526, 1530 (10th Cir. 1988)(An expense
is administrative only if it arises out of a transaction
between the creditor and the trustee or debtor in possession
and only to the extent that the consideration supporting the
claim was supplied to and beneficial to the debtor in
possession in the operation of the business.)
Valdez argues that Section 502(b)(7) contains no
limitations on when the claim was incurred. Section 502 deals
only with the allowance of claims, not their priority. It is
therefore inapposite.
The Trustee’s objection is well taken and should be
sustained.
Case 01-10779-nlj7 Doc 3137 Filed 09/01/05 Entered 09/06/05 10:48:00 Page 3 of 4

Page -3-
ORDER
IT IS ORDERED that the Chapter 7 Trustee’s Objection to
Pat Valdez’s Chapter 11 Administrative Claim (doc. 2797) is
sustained.
Honorable James S. Starzynski
United States Bankruptcy Judge
I hereby certify that on September 1, 2005, a true and correct
copy of the foregoing was electronically transmitted, faxed,
delivered, or mailed to the listed counsel and/or parties.
David T. Thuma
500 Marquette Avenue NW #650
Albuquerque, NM 87102
Steve H. Mazer
122 10th Street NW
Albuquerque, NM 87102
Case 01-10779-nlj7 Doc 3137 Filed 09/01/05 Entered 09/06/05 10:48:00 Page 4 of 4