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IN RE MAJOR DYNAMICS, INC.

No. 88-5610.

897 F.2d 433 (1990)

In re MAJOR DYNAMICS, INC., a California corporation, Debtor. OFFICIAL CREDITORS COMMITTEE, Plaintiff, v. Herbert TUCHINSKY, Defendant-Third-Party Plaintiff/Appellant, v. Martin GOLDBERG, Trustee of the Estate of Major Dynamics, Inc., Debtor, Third-Party Defendant/Appellee.

United States Court of Appeals, Ninth Circuit.

Decided February 28, 1990.

Attorney(s) appearing for the Case

William O. Ward, III, Soloman, Ward, Seidenwurm & Smith, San Diego, Cal., for defendant-third-party plaintiff/appellant.

Kevin J. Hoyt, Estes & Hoyt, San Diego, Cal., for third-party defendant/appellee.

Before GOODWIN, Chief Judge, SCHROEDER and O'SCANNLAIN, Circuit Judges.

O'SCANNLAIN, Circuit Judge:

This is a declaratory relief action in which the former president of the debtor in possession contends that the trustee in bankruptcy breached a duty to pay over to the federal and state government taxes withheld from employees during the former president's operation of the company.

We are asked to decide whether post-petition withholding subjects such funds to a trust created in favor of the Internal Revenue Service ("IRS") (at...

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