Household Automotive v. Paul B. Gorham, Jr. , 22 F. App'x 691 ( 2001 )


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  •                     United States Court of Appeals
    FOR THE EIGHTH CIRCUIT
    ___________
    No. 01-2158
    ___________
    Household Automotive Finance,          *
    *
    Appellant,                 *
    * Appeal from the United States
    v.                               * District Court for the Western
    * District of Missouri.
    Paul Bernard Gorham, Jr.;              *
    Dana Jai Gorham;                       * [UNPUBLISHED]
    *
    Appellees,                 *
    *
    Richard V. Fink,                       *
    *
    Appellee.                  *
    ___________
    Submitted: December 6, 2001
    Filed: December 11, 2001
    ___________
    Before McMILLIAN, MORRIS SHEPPARD ARNOLD, and BYE, Circuit Judges.
    ___________
    PER CURIAM.
    This matter arises from the Chapter 13 bankruptcy of Paul and Dana Gorham.
    In their Chapter 13 plan, the Gorhams elected to retain an automobile financed
    through Household Automotive Finance Corporation (HAFC), pursuant to the “cram-
    down” option of 
    11 U.S.C. § 1325
    (a)(5)(B). The plan proposed that the Gorhams
    would pay HAFC interest at a rate of 9%, as determined by Local Rule for the United
    States Bankruptcy Court for the Western District of Missouri 3084-1.E. The local
    rule rate is calculated based on the 30-year treasury bond rate for a specified date,
    plus 2% nominal interest, and is referred to as the “Chapter 13 rate.” HAFC objected
    to the plan’s proposed interest rate, arguing that the appropriate rate was the 20.95%
    contract rate.
    The bankruptcy court1 denied HAFC’s objection, holding that Rule 3084-1.E
    was a reasonable means of determining the appropriate interest rate in Chapter 13
    cases, and that HAFC’s proposed rate improperly accounted for profit and overhead.
    HAFC appealed the decision to the district court,2 and the district court affirmed. In
    this appeal, HAFC argues that the bankruptcy court did not consider the evidence
    presented; and even if it did, it erred in concluding that the Chapter 13 rate was
    appropriate.
    We find the bankruptcy court reviewed the evidence before it and concluded
    that the Chapter 13 rate was appropriate in the circumstances, and that HAFC’s
    proposed rate was too high. Further, we find no clear error in the bankruptcy court’s
    conclusion that the Chapter 13 rate was reasonable. See United States v. Doud, 
    869 F.2d 1144
    , 1146 (8th Cir. 1989) (appropriate rate consists of risk-free rate plus
    additional reasonable interest to compensate creditor for risk of default; reviewing
    determination of proper rate for clear error). Accordingly, we affirm the judgment of
    the district court.
    1
    The Honorable Frank W. Koger, United States Bankruptcy Judge for the
    Western District of Missouri.
    2
    The Honorable Fernando J. Gaitan, Jr., United States District Judge for the
    Western District of Missouri.
    -2-
    A true copy.
    Attest:
    CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.
    -3-
    

Document Info

Docket Number: 01-2158

Citation Numbers: 22 F. App'x 691

Judges: McMillian, Arnold, Bye

Filed Date: 12/11/2001

Precedential Status: Non-Precedential

Modified Date: 11/5/2024