Kal W. Lines v. State of California, Department of Employment

On March 28,1957, this Court rendered an opinion in this case affirming the judgment of the District Court in which it was held that a trustee in bankruptcy is required to pay to the State of California, Department of Employment, the tax imposed upon employers by the California Unemployment Insurance Code on wages which had been earned, but not paid at the time of bankruptcy, by employees of the bankrupt within the three month period preceding the filing of the bankruptcy petition. See Lines v. State of California, Department of Employment, 9 Cir., 242 F.2d 201 . A petition for rehearing was filed by appellant trustee. In addition, the Labor Commissioner of the State of California filed an amicus curiae brief in support of the Trustee’s petition for rehearing. We entered an order in the following words:

Appellee, Department of Employment, filed a brief June 10, 1957, and the appellant Trustee filed a brief June 19,1957, subsequent to oral argument. We now discuss the case based on the briefs, petitions and oral argument, and the opinion filed March 28, 1957, is hereby amended by adding the following.

We discuss only one point, and that is whether we are correct, in holding that…