National Association of Government Employees Local

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
NATIONAL ASSOCIATION OF
GOVERNMENT EMPLOYEES LOCAL
R3-77,
Debtor.
)
)
)
)
)
)
)
Case No. 09-00167
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION RE DENIAL OF PETITION
Richard Petta, Dwyane Jeffers, Gilbert Martinez, Vicente
Matias Murrell, and Craig Yamaoka (the “Petitioning Creditors”)
have filed an involuntary petition against the alleged debtor,
National Association of Government Employees Local R3-77. 	The
Petitioning Creditors having described the putative debtor as a
non-profit entity, and having indicated that the debtor had
dissolved, the court issued an order directing the Petitioning
Creditors to demonstrate that the alleged debtor is, in fact,
eligible to be an involuntary debtor (Docket Entry (“DE”) No. 5,
entered May 21, 2009).
The Petitioning Creditors have filed a response (DE No. 7,
filed June 5, 2009), urging that the petition be allowed because
(a) the debtor’s status as a non-profit entity does not preclude
The document below is hereby signed.
Signed: June 12, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 09-00167 Doc 8 Filed 06/15/09 Entered 06/15/09 11:41:53 Desc Main
Document Page 1 of 3

1 	The court will accept as true the Petitioning Creditors’
allegation that the alleged debtor has not dissolved. 	The court,
however, will deny the petition on other grounds.
2
bankruptcy, and (b) the alleged debtor has not dissolved. 1 	The
court will deny the petition for the following reasons.
In their response, the Petitioning Creditors explain, at
length, why a labor union should be treated as an artificial
person in the same manner as a corporation such that the putative
debtor should be deemed eligible to be a debtor under the
Bankruptcy Code (11 U.S.C.). 	The issue, however, is not whether
the debtor is a corporation and thus a person eligible under 11
U.S.C. § 109 to be a debtor under chapter 7 of the Bankruptcy
Code. 	It is plain that the putative debtor is eligible to be a
voluntary debtor in a chapter 7 case. 	Instead, the issue is
whether the putative debtor is “not a moneyed, business, or
commercial corporation” and thus, pursuant to 11 U.S.C. § 303(a),
not an entity against whom an involuntary petition may be
brought. 	The Petitioning Creditors contend that this “cannot be
a controlling factor in determining what estates are eligible to
enter involuntary bankruptcy proceedings,” citing Highway & City
Freight Drivers, Local Union No. 600 v. Gordon Transports, Inc.,
576 F.2d 1285, 1291 (8th Cir. 1978). 	The Freight Drivers case,
however, involved a voluntary petition by a labor union, not an
involuntary petition, and its point was that not being a moneyed,
business, or commercial corporation cannot be determinative of
Case 09-00167 Doc 8 Filed 06/15/09 Entered 06/15/09 11:41:53 Desc Main
Document Page 2 of 3

3	O:\TEEL\Laura\ORDERS\Order for Relief - involuntary\Memorandum Decision_Dismiss Involuntary Petition_labor union_NAGEL.wpd
whether an entity may be a debtor in a voluntary case, although
the court noted (citing to Collier’s) that it does bar an
involuntary case against such an entity. 	The Petitioning
Creditors have failed to demonstrate that the alleged debtor is a
moneyed, business, or commercial corporation, and thus, pursuant
to 11 U.S.C. § 303(a), the petition must be denied.
An order follows.
[Signed and dated above.]
Copies to: Debtor; Office of United States Trustee; Richard
Petta; Dwyane Jeffers; Gilbert Martinez; Vicente Matias Murrell;
Craig Yamaoka.
Case 09-00167 Doc 8 Filed 06/15/09 Entered 06/15/09 11:41:53 Desc Main
Document Page 3 of 3