In Re Bodin Apparel, Inc.
Bodin Apparel, Inc. (Bodin) appealed a bankruptcy court order that granted priority status to a claim by the ILGWU Southeast Region Health and Welfare Fund (the Fund) for unpaid employee benefit contributions. The bankruptcy court had found that Bodin ceased its principal business operations by October 31, 1980, entitling the Fund's claim for contributions from the preceding 180 days to priority under 11 U.S.C. § 507(a)(4). Bodin contended that its post-October 1980 reorganization and liquidation activities constituted 'doing business,' which would shift the priority measurement date to its November 23, 1981 Chapter 11 filing, thereby eliminating the Fund's priority claim. The district court, under Judge Robert J. Ward, conducted a de novo review of the legal interpretation of 'cessation of business' within § 507(a)(4) and affirmed the bankruptcy court's decision, concluding that Bodin had indeed ceased its principal business by October 31, 1980, thus upholding the priority of the Fund's $32,964.98 claim.