Coyote Construction, Inc.

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re No. 04-45081 T
Chapter 7
COYOTE CONSTRUCTION,
Debtor.
_____________________________/
MEMORANDUM RE ADMINISTRATIVE CLAIM OF
LABORERS TRUST FUNDS FOR NORTHERN CALIFORNIA
The motion of the Laborers Trust Funds for Northern California
(“Trust Funds”) for allowance of a chapter 11 administrative claim
for unpaid contributions, interest, liquidated damages, and
attorneys’ fees came before the Court on November 10, 2005.
Appearances were stated on the record. The Court advised the
parties that, based on In re World Sales, Inc., 183 B.R. 872
(Bankr. 9th Cir. 1995), it concluded that the amounts in question
were entitled to chapter 11 administrative expense priority. The
issue was raised as to whether this priority extended to amounts
incurred or accrued after the case was converted to chapter 7.
The Court had not considered this issue and took it under
submission to see if there was any authority on point.
Signed: November 14, 2005
________________________________________
LESLIE TCHAIKOVSKY
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
November 16, 2005
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 04-45081 Doc# 185 Filed: 11/14/05 Entered: 11/16/05 10:18:28 Page 1 of
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The Court has now reviewed the applicable case law and can
find no authority on point. In the absence of authority to the
contrary, the Court concludes that the administrative claim does
not include such amounts. The Court believes this is the ruling
most consistent with the principles of the priority scheme.
Unless the assets in a chapter 7 case may be devoted first to the
costs of administering the chapter 7, it would be difficult for
the bankruptcy system to operate on a fiscally sound basis.
Counsel for the Laborers Trust Fund is directed to submit a
proposed form of order in accordance with this decision.
END OF DOCUMENT
Case: 04-45081 Doc# 185 Filed: 11/14/05 Entered: 11/16/05 10:18:28 Page 2 of
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COURT SERVICE LIST
Lois I. Brady
Chapter 7 Trustee
350 Frank H. Ogawa Plaza
Suite 702
Oakland, CA 94612
Willie E. Phillips
Law Offices of Willie E. Phillips
484 Lake Park Ave. #445
Oakland, CA 94610
Bruce K. Leigh
Stanton, Kay & Watson, LLP
101 New Montgomery St., 5th Floor
San Francisco, CA 94105-3612
Case: 04-45081 Doc# 185 Filed: 11/14/05 Entered: 11/16/05 10:18:28 Page 3 of
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