Montgomery v. United States

532 F.2d 725 76-1 USTC P 9325 In the Matter of Jack R. MONTGOMERY, doing business as M R Enterprises, a co-partnership, Delores I. Montgomery, Bankrupts. Curtis B. DANNING, Trustee, Appellant, v. UNITED STATES of America, Claimant-Appellee. Nos. 75-2442, 75-2443. United States Court of Appeals, Ninth Circuit. March 18, 1976. Gary J. Miller (argued), Sherman Oaks, Cal., for appellant. Karl Schmeidler, Atty., Dept. of Justice (argued), Washington, D. C., for claimant-appellee.OPINION Before CHAMBERS and CHOY, Circuit Judges, and EAST, * Senior District Judge. EAST, Senior District Judge: The Bankruptcy Judge held that the tax claim of the United States (Government) against the members of a bankrupt partnership was subordinated by 11 U.S.C. § 23 (g) to the claims of individual creditors of the individual Bankrupts. The District Court reversed, deciding that the Government was an individual creditor and its tax claim held priority under 11 U.S.C. § 104 (a)(4). The Trustee appeals and we reverse. Jack R. Montgomery and one Carlos Rivera were general co-partners operating under the name of "M R Enterprises." The co-partnership was indebted to, among other creditors, the…