Health Maintenance Foundation v. System Board of Adjustment No. 94 Brotherhood of Railway, Airline & Steamship Clerks

680 F.2d 619 110 L.R.R.M. (BNA) 3077 , 95 Lab.Cas. P 13,788 , Bankr. L. Rep. P 68,916 In the Matters of HEALTH MAINTENANCE FOUNDATION, California Health Foundation, Health Maintenance Inc., Health Maintenance Inc. of Northern California, and Health Maintenance Inc. of Arizona, Bankrupts. Kal W. LINES, Trustee, Appellant, v. SYSTEM BOARD OF ADJUSTMENT NO. 94 BROTHERHOOD OF RAILWAY, AIRLINE & STEAMSHIP CLERKS, et al., Appellees. No. 81-4277. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 14, 1982. Decided June 29, 1982. Merle C. Meyers, Goldberg, Stinnett & MacDonald, San Francisco, Cal., for appellant. Philip S. Warden, Dinkelspiel & Dinkelspiel, San Francisco, Cal., for appellees. Appeal from the United States District Court for the Northern District of California. Before GOODWIN, FLETCHER and POOLE, Circuit Judges. GOODWIN, Circuit Judge. 1 Appellant Lines, the Trustee for Health Maintenance Foundation, et al. (HMF), the bankrupts, appeals the district court's decision that severance pay for certain employees of HMF is entitled to priority status as a cost of administration payable before all other unsecured claims against the bankruptcy…