In re Hacker-Byrnes Corp.

This is a review of an order of the referee in bankruptcy which in part held that a claim filed by the California-Western States Life Insurance Company against the bankrupt corporation is not entitled to priority as a tax claim under the provisions of Section 64 sub. a(4) of the Act of Congress relating to bankruptcy, 11 U.S.C.A § 104, sub. a (4).

The claim was filed for the sum of $162.-41. It was based upon monies withheld from wages paid by Hacker-Byrnes Corporation to its employees between January 1, 1949 and March 31, 1949, pursuant to a voluntary plan of unemployment disability •compensation insurance approved by the California Employment Stabilization Commission and insured by the claimant under its policy No. 6417, in accordance with part 6 of Article 10 of the California Unemployment Insurance Act, Statutes and Amendments of the Codes of California, 1946-1947, pages 101 to 113, Gen.Laws, Act 8780d, § 450 et seq.

After hearing, upon objections to the claim by the trustee, the referee ruled that $81.26 of the claim should be allowed the claimant insurance company as a labor priority under Section 64, sub. a(2) of the Bankruptcy Act. The referee also ruled that no part of…