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IN RE UNITED HEALTHCARE SYSTEMS INC.

No. 97-21785(NLW).

282 B.R. 330 (2002)

In re UNITED HEALTHCARE SYSTEMS INC., Debtors.

United States Bankruptcy Court, D. New Jersey.

September 3, 2002.

Attorney(s) appearing for the Case

Dennis J. O'Grady, Esq., J. Alex Kress, Esq., Riker, Danzig, Scherer, Hyland & Perretti, LLP, Morristown, NJ, for the Official Committee of Unsecured Creditors of United Healthcare Systems, Inc.

John C. Turi, Deputy Attorney General, Office of the Attorney General of NJ, Trenton, NJ, for New Jersey Department of Labor.

OPINION

NOVALYN L. WINFIELD, Bankruptcy Judge.

The issue presently before the Court is whether the reimbursement claim filed by the New Jersey Department of Labor ("NJDL" or the "Department") against the debtor, United Healthcare System, Inc., ("United" or the "Debtor") should be afforded priority of payment as either an administrative expense claim pursuant to 11 U.S.C. §§ 503(b)(1)(B) and 507(a)(1), or a priority tax claim pursuant to 11 U.S...

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