- 11 U.S.C.
In re Albion Health Servs.
Mar
16
2006
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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Court
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