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IN RE LORBER INDUSTRIES OF CALIFORNIA, INC.

No. 79-3610.

675 F.2d 1062 (1982)

In re LORBER INDUSTRIES OF CALIFORNIA, INC., a California corporation, Debtor. COUNTY SANITATION DISTRICT NO. 2 OF LOS ANGELES COUNTY, Claimant-Appellee, v. LORBER INDUSTRIES OF CALIFORNIA, INC., Debtor-Appellant.

United States Court of Appeals, Ninth Circuit.

Decided April 28, 1982.

Attorney(s) appearing for the Case

Irving Sulmeyer, Sulmeyer, Kupetz, Baumann & Rothman, Los Angeles, Cal., for debtor-appellant; Bennett L. Silverman, Los Angeles, Cal., on brief.

Daniel V. Hyde, Knapp, Stevens, Grossman & Marsh, Los Angeles, Cal., for claimant-appellee.

Before GOODWIN, HUG and FARRIS, Circuit Judges.

HUG, Circuit Judge:

This action was filed under Chapter XI of the Bankruptcy Act1 by Lorber Industries, Inc. In the arrangement proceedings before the bankruptcy court, the local sewer district filed a claim for sewer use fees it had assessed to the debtor. It was claimed the user fees constituted taxes and were therefore entitled to priority status. We hold that such fees do not constitute taxes, and that the bankruptcy court correctly...

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