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IN RE PALAU CORP.

BAP No. NC-91-2101-MeRPe, Bankruptcy No. 3-80-02354.

139 B.R. 942 (1992)

In re PALAU CORPORATION, Debtor. NATIONAL LABOR RELATIONS BOARD, Appellant, v. Edward M. WALSH, Trustee for Palau Corporation, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided May 13, 1992.

Attorney(s) appearing for the Case

Corinna L. Metcalf, Washington, D.C., for N.L.R.B.

Linda Sorensen, San Francisco, Cal., for Edward M. Walsh, Trustee.

Before: MEYERS, RUSSELL and PERRIS, Bankruptcy Judges.

OPINION

MEYERS, Bankruptcy Judge:

I

The National Labor Relations Board ("Board") appeals from the order of the bankruptcy court which denied administrative priority to its claim for postpetition backpay that accrued to an individual wrongfully discharged prepetition by Palau Corporation ("Debtor").

II

FACTS

The Debtor was a business engaged in repairing ships. From July 1, 1980 to June 30, 1983, the Debtor was party...

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