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§ 507(a)

Supplee v. Bethlehem Steel Corp. (In re Bethlehem Steel Corp.)

Ruling
Claim for lump sum payment of retirement benefits to employee terminated by debtor was not entitled to administrative priority.
Procedural posture

Contending that a portion of the early retirement benefits that became due when he was terminated without cause by appellee debtor was entitled to administrative priority under 11 U.S.C. § 507(a)(1), appellant former employee sought review of a judgment of the District Court for the Southern District of New York affirming the bankruptcy court's determination that the payment at issue was not an administrative expense.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 02, 2007 , LexisNexis #0407-017

In re Consolidated Freightways Corp.

Ruling
Retirees' claims for medical expenses not reimbursed from employee benefit plans terminated by debtor employer were entitled to priority status.
Procedural posture

Claimant retirees from bankruptcy debtors filed proofs of claim for medical expenses which were not reimbursed from the debtors'employee benefit plans, which were terminated prepetition by the debtors. The retirees sought allowance of their claims as priority unsecured claims under 11 U.S.C. § 507(a)(5), a trustee of a creditors'trust objected to the priority of the claims.

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opinion summary, case decided on February 23, 2007 , LexisNexis #0407-058

Ramos Delgado v. Sanchez Ramos (In re Ramos Delgado)

Ruling
Claim for taxes last due within three years of petition properly held to be priority claim.
Procedural posture

Appellant debtor challenged an order from the Bankruptcy Court for the District of Puerto Rico, which overruled his objection to a claim of priority under 11 U.S.C. § 507(a)(8)(A)(i) for income taxes imposed by the Commonwealth of Puerto Rico for calendar year 2001.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on December 18, 2006 , LexisNexis #0207-020

In re Toberman

Ruling
IRS was entitled to a priority unsecured claim for debtor's failure to remit withholding taxes.
Procedural posture

When debtor filed a chapter 7 bankruptcy proceeding, the IRS filed a proof of claim in which it asserted that, by reason of unpaid employee withholding taxes, it was a priority unsecured creditor under 11 U.S.C. § 507(a)(8) and was entitled to a stated sum in that capacity. The trustee objected to the IRS claim and also claimed that it was properly subordinated per 11 U.S.C. § 510(c).

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opinion summary, case decided on November 22, 2006 , LexisNexis #0307-022

Alabama Dept of Human Resources v. Sanders (In re Sanders)

Ruling
BAPCPA did not require domestic support arrerages to be paid in full before other disbursements in a chapter 13 plan.
Procedural posture

Appellant creditor sought review of an order of bankruptcy court, which included the creditor's domestic support arrearages within plan of appellees, two debtors and the debtors'trustee, but overruled the creditor's objection to confirmation of the plan as to whether the order of priorities of 11 U.S.C. § 507 should apply to the plan.

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opinion summary, case decided on July 17, 2006 , LexisNexis #0906-074

Howard Delivery Serv. v. Zurich Am. Ins. Co.

Ruling
Court deemed that unpaid workers'compensation insurance premiums were not entitled to priority status under section 507(a)(5) because such premiums were classified more as liability insurance premiums than as employee benefit plan contributions.
Procedural posture

Petitioner employer filed a chapter 11 bankruptcy petition. Respondent insurer filed an unsecured creditor's claim, seeking priority status under 11 U.S.C. § 507(a)(5) for unpaid workers'compensation premiums. The bankruptcy court denied priority status to the insurer's claim, and the district court affirmed. The Fourth Circuit reversed. Certiorari was granted.

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opinion summary, case decided on June 15, 2006 , LexisNexis #0606-084

In re Build Tech Sys.

Ruling
Insurer was entitled to priority claim status for its claim for unpaid premiums for health insurance benefits provided to the debtor's employees.
Procedural posture

Insurer filed a claim for unpaid insurance premiums. The insurer alleged that the claim was for health insurance benefits provided to the debtor's employees, and thus was entitled to priority status under 11 U.S.C. § 507(a)(4) as a contribution to an employee benefit plan. The chapter 7 trustee objected on the basis that the asserted claim was not eligible for priority claim status.

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opinion summary, case decided on March 21, 2006 , LexisNexis #0406-086

In re Albion Health Servs.

Ruling
Court ruled that a state's claim for reimbursement of unemployment benefits to the debtor's former employees was not an excise tax entitled to priority.
Procedural posture

A bankruptcy debtor, a not-for-profit corporation that owned a hospital, ceased operation before filing its bankruptcy petition and its former employees received unemployment compensation from the state of Michigan. The state asserted a claim for reimbursement of the unemployment benefits which it paid, and the trustee objected to the allowance of the claim as a tax priority under 11 U.S.C. § 507(a)(8). The trustee moved for summary judgment.

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opinion summary, case decided on March 16, 2006 , LexisNexis #0406-017

In re Garden Ridge Corp.

Ruling
Claims by debtor's two former employees were deemed allowed as unsecured priority claims since their employment ended during the 90-day priority period and the right to receive severance payments was earned no earlier than on termination.
Procedural posture

Before the court in a chapter 11 matter was debtor's Seventh Omnibus Objection (Substantive) to Administrative and Priority Claims Pursuant to 11 U.S.C. §§ 105 and 502(b) and Fed. R. Bankr. P. 3001, 3003, 3007, and two responses thereto filed by claimants, former employees of debtor.

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opinion summary, case decided on March 02, 2006 , LexisNexis #0306-084

In re Kuhn

Ruling
A chapter 7 trustee was allowed to make a claim for reasonable compensation and expenses reimbursement for work performed as an attorney prior to a conversion to chapter 13.
Procedural posture

After the debtor filed a chapter 7 petition for bankruptcy, the court appointed the trustee and authorized the trustee to act as his own attorney. The trustee objected to the debtor's motion under 11 U.S.C. § 706(a) to convert her case to a chapter 13 case. When the court converted the debtor's case to a chapter 13 case, the trustee filed a claim under 11 U.S.C. § 507(a)(1) for attorney's fees and expenses. The debtor objected to the claim.

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opinion summary, case decided on February 02, 2006 , LexisNexis #0306-017