Case Name: COMMONWEALTH OF MASSACHUSETTS v. THOMPSON. In re PLYMOLD CORP.
Court: United States Court of Appeals for the First Circuit
Jurisdiction: United States
Decision Date: 1951-06-07
Citations: 190 F.2d 10
Docket Number: No. 4545
Parties: COMMONWEALTH OF MASSACHUSETTS v. THOMPSON. In re PLYMOLD CORP.
Judges: 
Reporter: Federal Reporter 2d Series
Volume: 190
Pages: 10–12

Head Matter:
COMMONWEALTH OF MASSACHUSETTS v. THOMPSON. In re PLYMOLD CORP.
No. 4545.
United States Court of Appeals, First Circuit.
June 7, 1951.
Woodbury, Circuit Judge, dissented.
Harry P. Levowich, Counsel, Division of Employment Security, Boston, Mass. (Francis E. Kelly, Atty. Gen., of Massachusetts, and John A. Brennan, Chief Counsel, Division of Employment Security, Boston, Mass. with him on brief), for appellant.
Lee M. Friedman (Friedman, Atherton, King & Turner, Boston, Mass. with him on brief), for appellee.
Before MAGRUDER, Chief Judge, and WOODBURY and HARTIGAN, Circuit Judges.

Opinion:
MAGRUDER, Chief Judge.
This is an appeal by the Commonwealth of Massachusetts from an order of the United States District Court for the District of Massachusetts affirming an order of a Referee in Bankruptcy which stopped the running of interest on a tax claim of the Commonwealth as of the date of the filing of a petition in bankruptcy.
The essential facts can be stated briefly.
A petition in involuntary bankruptcy was filed against the debtor, Plymold Corporation, on August 23, 1947. Thereupon, without adjudication, proceedings upon the petition were stayed, and later that month the debtor filed a petition for an arrangement under Chapter XI of the Bankruptcy Act of 1898, as amended by the Chandler Act, 52 Stat. 905, 11 U.S.C.A. § 701 et seq. Delay ensued occasioned by the necessity of settling a re-negotiation claim of the United States, but an amended plan of arrangement was filed on January 11, 1950, which was allowed the next day. All things necessary to complete the consummation of the amended plan having been complied with on June 2, 1950, the arrangement was confirmed three days later on June 5.
The Commonwealth of Massachusetts seasonably filed its claim against the debtor for contributions under its Employment Security Law, St.1941, c. 685, as amended, and claimed interest thereon at the statutory rate of 6% per annum down to the date of payment. The Referee allowed the claim, but refused to include interest after the date of the filing of the petition in bankruptcy on August 23, 1947. In doing so he relied upon City of New York v. Saper, 1949, 336 U.S. 328, 69 S.Ct. 554, 93 L.Ed. 710, and the court below affirmed relying upon the same case.
In our opinion the order should be affirmed for the reasons stated in United States v. General Engineering and Manufacturing Co., 8 Cir., 1951, 188 F.2d 80. This case is a square holding on the point raised by appellant in the case at bar and, we think, the opinion by Judge Sanborn makes clear that the reasoning of City of New York v. Saper, 1949, 336 U.S. 328, 69 S.Ct. 554, 93 L.Ed. 710, which involved a straight bankruptcy proceeding, is equally applicable to a proceeding for an arrangement under Chapter XI of the Bankruptcy Act. A contrary view would present formidable practical difficulties in the administration of Chapter XI.
The order of the District Court is affirmed.