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In re Hanratty

argued: June 19, 1990.

IN RE: HANRATTY, KEVIN F. HANRATTY, PATRICIA, DEBTOR; HANRATTY, KEVIN F. HANRATTY, PATRICIA
v.
PHILADELPHIA ELECTRIC CO. AND EDWARD SPARKMAN, TRUSTEE, KEVIN AND PATRICIA HANRATTY, APPELLANTS - 89-2070; IN RE: MUCERINO, DENNIS MUCERINO, DOROTHY V. PHILADELPHIA ELECTRIC CO. AND EDWARD SPARKMAN, TRUSTEE, DENNIS AND DOROTHY MUCERINO, APPELLANTS - 89-2071



On Appeal from the United States District Court for the Eastern District of Pennsylvania; D.C. Civil. Nos. 89-4307 and 89-4308.

Greenberg, Alito and Weis, Circuit Judges.

Author: Greenberg

Opinion OF THE COURT

GREENBURG, Circuit Judge.

These matters are before this court on appeal from an order of the district court of November 15, 1989, reversing an order of the bankruptcy court of April 26, 1989, which granted summary judgment to Kevin and Patricia Hanratty and Dennis and Dorothy Mucerino, the debtors. See Hanratty v. Philadelphia Elec. Co., 107 B.R. 55 (E.D. Pa. 1989). The essential facts in this case are not in dispute.

On November 16, 1988, and December 5, 1988, the Mucerinos and the Hanrattys filed voluntary petitions in bankruptcy under Chapter 13 of the Bankruptcy Code. The debtors are residents of Philadelphia and, as they were indebted to Philadelphia Electric Company for residential electric service, each listed Philadelphia Electric as a creditor. Philadelphia Electric is their only source of electrical service.

On December 5, 1988, Philadelphia Electric sent a letter to Dennis J. Mucerino reading as follows:

Re: Assurance of Payment $90.00

Acct # 23-16-43-1353

File: 88-14028

Dear Mr. Mucerino:

We have been advised that you have filed a petition under the Bankruptcy Code. As a result all bills for service prior to the date of petition will be subject to the jurisdiction of the court.

The Code provides, in part, that a utility may require adequate assurance of payment from the debtor. Therefore, the sum of $90.00 is hereby being requested in accordance with the Bankruptcy Code, on or before January 13, 1989. Failure to comply with this request shall result in termination of service.

You are further advised that all costs for utility service incurred after the date of your filing a petition as aforesaid, are due and payable when rendered, and are not ...


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