In re Parisi — 8 Misc. 2d 260

Majority

p. 260

In the Matter of Vincent Parisi, a Bankrupt.

Supreme Court, Cayuga County,

October 24, 1957.

Anthony J. Contiguglia for petitioner.

Louis J. Lefhowitz, Attorney-General (William 8. Elder, Jr., of counsel), for Industrial Commissioner.

The three warrants filed are for amounts of contributions to the State Unemployment Insurance Fund due from petitioner, unpaid.

Although these contributions are not called “ taxes ” in the Labor Law, they have been held to be taxes. (W. H. H. Chamberlin, Inc. v. Andrews, 271 N. Y. 1 , affd. 299 U. S. 515 ; Matter

p. 261

of Bank of Manhattan Co. [Murphy], 293 N. Y. 515 ; Guaranty Trust Co. v. State of New York, 299 N. Y. 295 .)

Whether or not unpaid contributions of this character are “ taxes ” within the meaning of section 35 of title 11 of the United States Code is a Federal question. If they are such they are not provable debts and were not discharged by the petitioner’s bankruptcy discharge. Neither counsel has, nor have I, been able to find a controlling precedent.

However, on the basis of the language of section 35 and of the cases hereinafter cited I have concluded that these contribution are “taxes” within the meaning of the bankruptcy statute (Matter of Lange Co., 159 F. 586 ; City of New York v. Feiring, 313 U. S. 283 ; United States v. New York, 315 U. S. 510 ) and were not discharged.

The motion is denied, without costs.

Cases cited

W. H. H. Chamberlin, Inc. v. Andrews 271 N. Y. 1 N.Y. 1936-04-15 p. 260
Union Building Corp. v. Conway 299 U. S. 515 SCOTUS 1936-12-07 p. 260
In re Bank of the Manhattan Co. 293 N. Y. 515 N.Y. 1944-11-30 p. 261
Guaranty Trust Co. v. State 299 N. Y. 295 N.Y. 1949-06-02 p. 261
City of New York v. Feiring 313 U. S. 283 SCOTUS 1941-05-26 p. 261
United States v. New York 315 U. S. 510 SCOTUS 1942-03-02 p. 261