Howard Delivery Services, Inc. v. Zurich American Insurance Co.
United States Supreme Court
547 U.S. 651 (2006)
Howard Delivery Services, Inc. (Howard) (defendant) was a freight-trucking business that operated in several states. Each state required Howard to obtain workers’ compensation coverage for Howard’s employees. Howard hired Zurich American Insurance Company (Zurich) (plaintiff) as a workers’ compensation provider. Howard eventually filed for bankruptcy under the United States Bankruptcy Code (Bankruptcy Code). Zurich filed an unsecured creditor’s claim for $400,000 in unpaid workers’ compensation premiums. Zurich sought priority status under section 507(a)(5) of the Bankruptcy Code, 11 U.S.C. § 507(a)(5). The bankruptcy court denied priority status to Zurich’s claim, and the federal district court affirmed. The court of appeals reversed. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Ginsburg, J.)
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