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McCRORY CORP. v. STATE OF OHIO

Nos. 94 Civ. 5954 (TPG), 95 Civ. 1519 (TPG).

212 B.R. 229 (1997)

McCRORY CORPORATION, Plaintiff, v. The STATE OF OHIO, et al, Defendants. McCRORY CORPORATION, Plaintiff, v. TEXAS COMPTROLLER OF PUBLIC ACCOUNTS, et al., Defendants.

United States District Court, S.D. New York.

March 31, 1997.

Attorney(s) appearing for the Case

Ira S. Sacks, Fried, Frank, Harris, Shriver & Jacobson, New York City, for McCrory Corp. in Nos. 94 Civ. 5954, 95 Civ. 1519.

Prince Altee Thomas, Office of Atty. Gen., Commonwealth of Pennsylvania, Philadelphia, PA, for State of Pennsylvania in No. 94 Civ. 5954.

Gregory S. Severance, Office of Atty. Gen. for the State of Ohio, Columbus OH, for State of Ohio, Dept. of Taxation in Nos. 94 Civ. 5954, 95 Civ. 1519.

Wallace E. Hutton, Tax Consultant II, Atty. for the State of Ohio, Columbus, OH, for State of Maryland, Comptroller of the Treasury, in Nos. 94 Civ. 5954, 95 Civ. 1519.

Mark Browning, Lynn Hamilton Butler, Asst. Atty. Gen., Atty. Gen. Office, State of Texas, Austin, TX, for Texas Comptroller of Public Accounts in No. 95 Civ. 1519.

OPINION

GRIESA, Chief Judge.

These cases come before the District Court on appeal from an order of the Bankruptcy Court (Blackshear, J.) preliminarily enjoining any tax assessment or collection proceeding by any state or local taxing authority against the employees of McCrory Corporation and certain related corporations ("McCrory") for debts arising from taxes unpaid by McCrory prior to its bankruptcy proceeding.

On February 26, 1992, McCrory...

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