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IN RE FOUR STAR FINANCIAL SERVICES, LLC

No. CV 11-03266-CJC.

469 B.R. 30 (2012)

In re FOUR STAR FINANCIAL SERVICES, LLC, Debtor. Richard A. Marshack, Chapter 7 Trustee, Appellant, Brian Hammond, Class Representative, Appellee.

United States District Court, C.D. California, Southern Division.

February 6, 2012.

Attorney(s) appearing for the Case

D. Edward Hays , Judith E. Marshack , Sarah C. Boone , Marshack Hays LLP, Irvine, CA, for Appellants.

David W. Meadows , David W. Meadows Law Offices, Los Angeles, CA, U.S. Trustee, United States Trustee, Los Angeles, CA, for Appellee.

ORDER REVERSING THE BANKRUPTCY COURT'S FEBRUARY 9, 2011 ORDER

CORMAC J. CARNEY, District Judge.

I. INTRODUCTION AND BACKGROUND

On February 9, 2011, the bankruptcy court denied the Appellant's motion to disallow the priority distribution of Appellee's claim under 11 U.S.C. § 507(a)(7) of the Bankruptcy Code. On March 19, 2010, the Appellant appealed the bankruptcy court's decision. The issue before...

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