In The Matter Of Professional Bar Co., Inc.

537 F.2d 339 In the Matter of PROFESSIONAL BAR CO., INC., a corporation, Bankrupt. Irving SULMEYER, Trustee in Bankruptcy for Professional Bar Co., Inc., Appellant, v. STATE OF CALIFORNIA DEPARTMENT OF EMPLOYMENT DEVELOPMENT, and State of California State Board of Equalization, Appellees. No. 75-1051. United States Court of Appeals, Ninth Circuit. May 5, 1976. Rehearing and Rehearing En Banc Denied July 12, 1976. Brian Siegal (argued), Los Angeles, Cal., for appellant. Herbert A. Levin, Deputy Atty. Gen. (argued), Los Angeles, Cal., for appellees. Before SMITH, * TRASK, and GOODWIN, Circuit Judges. PER CURIAM: 1 The trustee in bankruptcy brought action against the California Department of Employment Development and the State Board of Equalization to recover, for the benefit of certain wage claimants, money paid to the state as a condition of the transfer of four on-sale liquor licenses. The district court denied recovery, and the trustee appeals. We affirm. 2 The trustee argues that, under both federal and state law, qualified wage claims against a bankrupt estate are entitled to priority over tax claims of the class asserted here. This is true as a general principle. 1 In this…