MASSACHUSETTS BONDING & INS. CO. v. STATE OF N. Y.

No. 337, Docket 25032.

259 F.2d 33 (1958)

MASSACHUSETTS BONDING AND INSURANCE COMPANY and United States of America, Claimants-Appellants, v. STATE OF NEW YORK, Claimant-Appellee. In re FAGO CONSTRUCTION CORPORATION, Bankrupt.

United States Court of Appeals Second Circuit.

Decided July 11, 1958.


Attorney(s) appearing for the Case

Mark N. Turner, of Brown, Kelly, Turner & Symons, Buffalo, N. Y. (Raymond C. Vaughan, Buffalo, N. Y., on the brief), for claimant-appellant Massachusetts Bonding & Insurance Co.

George F. Lynch, Atty., Dept. of Justice, Washington, D. C. (Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson and I. Henry Kutz, Attys., Dept. of Justice, Washington, D. C., and John O. Henderson, U. S. Atty., W.D.N.Y., and John C. Broughton, Asst. U. S. Atty., Buffalo, N. Y., on the brief), for claimant-appellant United States.

Ruth Kessler Toch, Asst. Atty. Gen. of State of New York, Albany, N. Y. (Louis J. Lefkowitz, Atty. Gen. of State of New York, and Paxton Blair, Sol. Gen., New York City, and Michael P. Geraci, Asst. Atty. Gen., Buffalo, N. Y., on the brief), for State of New York, claimant-appellee.

Before CLARK, Chief Judge, and SWAN and LUMBARD, Circuit Judges.


CLARK, Chief Judge.

This is an appeal in a bankruptcy proceeding in which the parties contest their relative priorities to some $41,000 now left in the bankrupt's estate. Involved are claims of the United States for unpaid withholding, social security, and unemployment taxes, claims of the State of New York for unpaid franchise, motor fuel, and unemployment insurance taxes, and two claims of Massachusetts Bonding and Insurance Company, a surety on two contracts performed...

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