Employers Insurance of Wausau, Creditor-Appellee v. Plaid Pantries, Inc., Debtor-Appellant

Debtor-appellant Plaid Pantries, Inc. (“Plaid”) appeals from the district court’s decision that creditor-appellee Employers Insurance of Wausau’s (“Wausau”) claim for unpaid workers’ compensation insurance premiums was entitled to priority payment from Plaid’s bankruptcy estate, 137 B.R. 405 . We have jurisdiction under 28 U.S.C. § 158 (d), and review the conclusions of the district and bankruptcy courts on this issue of law de novo. In re Daniels-Head & Assoc., 819 F.2d 914, 918 (9th Cir.1987). There are no material facts in dispute.

I.

This case presents a narrow but significant legal issue: Are unpaid workers’ compensation premiums entitled to priority payment from a bankruptcy estate under 11 U.S.C. § 507 (a)(4)? Section 507(a)(4) grants contributions to an “employee benefit plan” a fourth level of priority preference. Section 507 states that, “The following expenses and claims have priority in the following order: .... Fourth, allowed unsecured claims for contributions to an employee benefit plan....”

The term “employee benefit plan” is not defined by that statute.

II.

The material facts are not in dispute. Wausau provided health, life and disability benefits to the…