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MATTER OF HEALTH MAINTENANCE FOUNDATION

No. 81-4277.

680 F.2d 619 (1982)

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.

United States Court of Appeals, Ninth Circuit.

Decided June 29, 1982.

Attorney(s) appearing for the Case

Merle C. Meyers, Goldberg, Stinnett & MacDonald, San Francisco, Cal., for appellant.

Philip S. Warden, Dinkelspiel & Dinkelspiel, San Francisco, Cal., for appellees.

Before GOODWIN, FLETCHER and POOLE, Circuit Judges.

GOODWIN, Circuit Judge.

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 estate. See 11 U.S.C. § 104(a)(1) (section 64(a)(1) of the Bankruptcy Act of 1898, now repealed). The provisions and policies of the former...

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