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IN RE SACO LOCAL DEVELOPMENT CORP.

No. 82-1798.

711 F.2d 441 (1983)

In re SACO LOCAL DEVELOPMENT CORP., Leather Comfort Corporation, Kirstein Leather Co., d/b/a Saco Tanning Corp., Kirstein Split Corporation, Debtors. Roderick R. Rovzar, Trustee, Appellant.

United States Court of Appeals, First Circuit.

Decided June 27, 1983.

Attorney(s) appearing for the Case

Charles E. Miller, with whom Gregory A. Tselikis, and Bernstein, Shur, Sawyer & Nelson were on brief, for appellant.

Peter S. Plumb, with whom Clark C. Hambley, Jr., and Murray, Plumb & Murray were on brief, for appellee Northwestern National Life Ins. Co.

Linwood Holton, Joe W. Peel, R. Otto Meletzke, and John R. Hurley on brief for the American Council of Life Ins. and Health Ins. Ass'n of America, amicus curiae.

Before COFFIN, Chief Judge, BREYER, Circuit Judge, and MALETZ, Senior Judge.

BREYER, Circuit Judge.

The trustee in bankruptcy of Saco Local Development Corporation and several related entities ("Saco") appeals from a bankruptcy court ruling that Northwestern Life Insurance Co. is entitled to priority payment of Saco employee group life, health, and disability insurance premiums. The bankruptcy court found that these payments fit squarely within the language of 11 U.S.C. § 507(a)(4), which grants a priority to "unsecured claims for contributions...

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