Document Type

Article

Publication Date

2-23-1987

Abstract

Export-Import Services, Inc. ("Import Services") appeals from a judgment entered in the United States District Court for the Southern District of New York (Walker, J.) affirming an order of the bankruptcy court (Buschman, J.) denying Import Services' priority claim against the bankrupt estate of International Engineers, Inc. ("Engineers"). Both the bankruptcy court and the district court denied the priority claim and classified Import Services as a general unsecured creditor. The sole issue on appeal is whether a customs broker's voluntary payment of United States Customs duties on behalf of an importer effects an assignment of the government's interest, thereby enabling the broker, in the importer's subsequent Chapter VII proceedings, to claim the same priority to which the government would be entitled under section 64(a)(4) of the Bankruptcy Act of 1898, 11 U.S.C. § 104(a)(4) (1977), repealed by Bankruptcy Code of 1978, Pub.L. No. 95-598, 92 Stat. 2583 (for current governmental customs duty priority, see 11 U.S.C. § 507(a)(7)(F) (Supp.1985)). We find that there was no assignment of the government's priority and we therefore affirm the decision of the district court.

Comments

812 F.2d 78 (1987)

In re INTERNATIONAL ENGINEERS, INC. EXPORT-IMPORT SERVICES, INC., Plaintiff-Appellant, v. INTERNATIONAL ENGINEERS, INC., Defendant-Appellee.

No. 450, Docket 86-5054.

United States Court of Appeals, Second Circuit.

Argued December 5, 1986.

Decided February 23, 1987.

New York Law School location: File #296, Box #119

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