by the Petitioner, Stella Hand, shall be in full satisfaction of a judgment entered against the Trustees in the Courts of the State of New York on January 12, 1971 in the sum of $174,721.30.
JOHN P. FULLAM District Judge
ORDER NO. 3172
AND NOW, this 4th day of October, 1977, upon consideration of the Petition of Florence LaRocco (Kohler) to Compel the Trustees to Honor Pre-Bankruptcy Judgment As Having Been Liquidated (Petition), (Document No.), the Trustees' Answer thereto, and on notice duly given in accordance with the Order of Notice, it is ORDERED:
1. The Petition is denied.
2. Petitioner, Florence LaRocco, is entitled by Order No. 2921 to payments not to exceed $115,000, which amount does not include interest accrued either prior to or after June 21, 1970. Such (payments), if accepted by Petitioner, Florence LaRocco, shall be in full satisfaction of a judgment entered against the Trustees in the Courts of the State of New York on November 12, 1971 in the sum of $172,428.82.
ON MOTION FOR REARGUMENT
Petitioner Florence LaRocco seeks reargument of the issues disposed of in Order No. 3172, concerning the exclusion of prebankruptcy interest on personal injury judgments which are to be settled in accordance with the compromise program made possible by the amicable settlement between the Trustees and the Federal Government.
Petitioner is undoubtedly correct that, as a matter of the law of the State of New York, she is entitled to interest on her judgment. And it is also safe to assume that, if her claim were to be disposed of in ordinary course through the Plan of Reorganization, the amount of her claim entitled to recognition in the Plan would include prebankruptcy interest on the judgment.
The compromise program made possible by the Government's deferrals of its high-priority claims has enabled the Trustees to offer to settle prebankruptcy personal injury claims in cash, rather than by distributions under the Plan of Reorganization to holders of unsecured prebankruptcy claims against the Debtor. The cash offer does not include prebankruptcy interest. If petitioner is dissatisfied with the cash arrangement, she is, of course, at liberty to insist upon being treated as a general unsecured creditor of the estate. The petition for reargument will be denied.
ORDER NO. 3226
AND NOW, this 2nd day of November, 1977, upon consideration of the petition of Florence LaRocco for reargument of the issues disposed of in Order No. 3172, it is ORDERED that the petition for reargument is DENIED.
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