In Re Donald MacNeil in Re Sharlee MacNeil Debtors. American State Bank Cit Financial Services, Inc. v. Thomas G. Marks

On August 11, 1989 the Bankruptcy Appellate Panel for the Ninth Circuit (“BAP”) affirmed a decision of the United States Bankruptcy Court for the District of Oregon (“Bankruptcy Court”) holding that under 11 U.S.C. § 726(b), Chapter 7 administrative expenses are entitled to priority over Chapter 11 claims granted superpriority status under 11 U.S.C. § 507(b). American State Bank v. Marks (In re MacNeil), 102 B.R. 766, 768 (9th Cir. BAP 1989) (per curiam). In reaching that conclusion, both the Bankruptcy Court and the BAP declined to address the underlying factual dispute whether the claims of…