In re Golden Gate Community Health

MEMORANDUM DECISION REGARDING TRUSTEE’S OBJECTION TO AMENDED CLAIM OF DIAN HARRISON

On August 11, 2011, Dian Harrison (“Claimant”) filed a proof of claim (Claim 82-1) (“Original Claim”) for a lump sum of $205,500 for severance benefits pursuant to a written agreement dated January 1, 2000 with debtor Golden Gate Community Health (“GGCH” or “Debtor”). See Claim 82-1 at 1:24-26. Citing a subsequent written agreement dated August 11, 2006, she also asserted a claim in the lump sum amount of approximately $43,400.00 for health, dental and vision insurance premiums. Id. at 1. She amended the original claim on May 31, 2017 (the “Amended Claim”) to assert that $12,850 of her claim was entitled to priority treatment.

On June 27, 2017, chapter 7 trustee Barry Milgrom (“Trustee”) objected to the priority status of the Amended Claim. Trustee also sought recovery of fees incurred by his professionals in objecting to the Amended Claim pursuant to the reciprocal attorney fee provision of California Civil Code section 1717. For the reasons set forth below, the court will sustain the Trustee’s objection to priority treatment of certain amounts of the Amended Claim. That said, the court will…