Legal Opinion

Gonzalez v. Gottlieb (In Re Metro Fulfillment, Inc.)

United States Bankruptcy Appellate Panel for the Ninth Circuit

Decided June 4, 2003No. BAP No. CC 02-1527-BMoP. Bankruptcy No. SV 01-21763-AGPublishedCited by 11 opinions

1Opinion of the Court

OPINION

BRANDT, Bankruptcy Judge.

In this appeal, we are asked to determine whether claims for penalty wages under California law for failure to timely pay postpetition wages, and for paying postpetition wages with checks drawn on insufficient funds, are entitled to administrative priority under § 503(b)(1)(A). 1 The bankruptcy court concluded that they were not, reasoning that penalty wages were not actual and necessary costs of preserving the estate. We REVERSE.

I. FACTS

The facts are undisputed. Metro Fulfillment, Inc. (“Debtor”) operated a warehouse in Newhall, California. It filed for…

2Cases cited18 opinions

  1. Cooter & Gell v. Hartmarx Corp.Supreme Court of the United States · 1990
  2. Reading Co. v. BrownSupreme Court of the United States · 1968
  3. United States v. NolandSupreme Court of the United States · 1996
  4. In Re Dant & Russell, Inc., Debtors. Burlington Northern Railroad Company, Creditor-Appellant v. Dant & Russell, Inc., Debtor-AppelleeCourt of Appeals for the Ninth Circuit · 1988
  5. 12 Collier bankr.cas.2d 686, Bankr. L. Rep. P 70,275 in Re Charlesbank Laundry, Inc., Debtor. Shepard A. Spunt v. Charlesbank Laundry, Inc.Court of Appeals for the First Circuit · 1985

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3Cited by11 opinions

  1. Computer Task Group, Inc. v. Brotby (In Re Brotby)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2003
  2. Boruff v. Cook Inlet Energy LLC (In Re Cook Inlet Energy LLC)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2018
  3. In Re First Magnus Financial Corp.United States Bankruptcy Court, D. Arizona · 2008
  4. Kipperman v. Internal Revenue Service, U.S.A. (In Re 800Ideas.com, Inc.)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2013
  5. In Re TSB, Inc.United States Bankruptcy Court, D. Idaho · 2003

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