Norwest Equipment Finance, Inc. v. Nath

RICHARD S. ARNOLD, Chief Judge.

The defendants in this ease, collectively referred to as the Nath Group, purchased assets from a bankrupt debtor, D & P Partnership. At the time of the purchase, the state of Minnesota imposed a sales tax on such sales, which tax was paid. Subsequently, Minnesota repealed the sales tax with retroactive application, so that the tax on this sale was subject to a refund. The Bankruptcy Court held that the plaintiffs in this case, secured creditors of D & P, were entitled to the proceeds of that refund. The District Court affirmed. We disagree and reverse.

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