Greenbelt CT Imaging Center, LLC

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: 	:
:
GREENBELT CT IMAGING 	: 	Case No. 07-18958PM
CENTER, LLC 	: 	Chapter 11
:
Debtor 	:
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MEMORANDUM OF DECISION
On October 30, 2007, the Debtor filed an Application for Order Authorizing Retention of
Grossberg Company LLP as Accountant, Nunc Pro Tunc. The Application was opposed by the
office of the United States Trustee and by Debtor’s principal secured creditor, General Electric
Capital Corporation.
Two grounds were cited in opposition to the Application. The first is that Grossberg
Company LLC (“Grossberg”) has a disqualifying financial interest in a prepetition creditor of the
Debtor, namely, that it holds a 25% interest in a joint venture, Grossberg/MPS Company, an
entity providing various valuation services that performed services for the Debtor prepetition and
did not receive payment prior to filing. This claim is said to amount to $18,000.00, so
Grossberg’s ownership interest in that claim amounts to $4,500.00. For the purpose of this
decision, the court will assume but not decide that this fact has no impact upon the court’s
decision whether Grossberg is a disinterested person as defined by § 101(14)(A) of the
Bankruptcy Code in that it is not a direct creditor of the Debtor. This does not end the present
dispute.
Date signed January 03, 2008
Entered: January 04, 2008 Case 07-18958 Doc 171 Filed 01/04/08 Page 1 of 2

Section 327(a) of the Bankruptcy Code provides:
11 U.S.C. § 327. Employment of professional persons
(a) Except as otherwise provided in this section, the trustee, with the
court’s approval, may employ one or more attorneys, accountants, appraisers,
auctioneers, or other professional persons, that do not hold or represent an interest
adverse to the estate, and that are disinterested persons, to represent or assist the
trustee in carrying out the trustee’s duties under this title.
Grossbert clearly has an adverse interest to the bankruptcy estate in that it is subject to an
avoidance action under § 547(a) of the Bankruptcy Code of a transfer of $25,900.00 made after
the filing of this bankruptcy case on September 16, 2007. As demonstrated by the U.S. Trustee’s
Exhibit No. 2, the check given by the Debtor to Grossberg on September 14, 2007, cleared
Debtor’s bank September 18, 2007, two days after the filing of this case. Under the rule found in
Barnhill v. Johnson, 503 U.S. 393 (1992), a transfer made by check is deemed to occur on the
date the check is honored, not the date of the payee’s receipt of the check as had been the rule of
decision in the Fourth Circuit. Quinn Wholesale, Inc. v. Northen, 873 F.2d 77 (CA4 1989). In
addition, as shown in the package of invoices from Grossberg to the Debtor admitted into
evidence as U.S. Trustee’s Exhibit No. 1, Grossberg is a likely target of a preference action on
account of a payment made July 21, 2007. As the target of avoidance actions, Grossberg falls
squarely within the prohibition of employment of parties having an interest adverse to the estate.
Because of Grossberg’s prior experience with the Debtor, it is unfortunate that it cannot
be called upon to do the accounting required by Debtor. Debtor will incur needless expense and
duplication of services in order to bring another accountant up to the level that Grossberg is with
respect to handling Debtor’s affairs. Unlike attorneys, the Debtor in Possession cannot employ
Grossberg for a specified special purpose under § 327(e) of the Bankruptcy Code.
An appropriate order will be entered.
cc:
Karen H. Moore, Esq., Paley Rothman, 4800 Hamden Lane, Bethesda, MD 20814
Lawrence Rosenblum, DPA, Grossberg Company LLP, 6500 Rock Spring Drive, #200,
Bethesda, MD 20817
United States Trustee, 6305 Ivy Lane, #600, Greenbelt MD 20770
David B. Tatge, Esq., Epstein Becker, 1227 25th Street, N.W., Washington, DC 20037
End of Memorandum
Case 07-18958 Doc 171 Filed 01/04/08 Page 2 of 2