In re Western Autopool & Transporting, Inc.
Nov 18, 2010OUTCOME: The Sacramento Bankruptcy Court suspended distribution on an allowed priority claim of the Franchise Tax Board because the Controller's Office refused to honor our client trustee's request for turnover of unclaimed property of the bankruptcy estate.
In applying Bankruptcy Code Section 502(d), the court rejected the State of California's contention that the Board and the Controller should be considered separate entities. 210 WL 9475475.