The U.S. Supreme Court is set to address the question about whether unpaid workers compensation insurance premiums are entitled to priority status under 11 U.S.C. ? 507(a)(4). On November 7, the Court granted certiorari to an appeal from a decision in favor of an insurance company in Howard Delivery Service, Inc. v. Zurich American Insurance Co. (In re Howard Delivery Service, Inc.), Case No. 04-1136 (4th Cir. March 24, 2005). In the Howard Delivery Service case, the Fourth Circuit reversed lower court decisions denying Zurich American's assertion of priority status. The Fourth Circuit noted that there is a disagreement on this issue among the various circuits, with some holding that because workers compensation coverage is required by statute and not a voluntary plan, that it did not qualify as an "employee benefit plan arising from services rendered." In reaching its decision, the Fourth Circuit determined that Zurich American's claim arose from "services rendered" by Howard Delivery's employees, because the very fact of their employment mandated that Howard Delivery purchase workers compensation coverage. Perhaps anticipating (or inviting) the Supreme Court's review, the Fourth Circuit took its cue in part from an earlier decision of the First Circuit, In re Saco Local Dev. Corp., 711 F.2d 441 (1st Cir. 1983), which was decided by then-Circuit Judge Stephen Breyer. The Fourth Circuit's opinion is located at http://pacer.ca4.uscourts.gov/opinion.pdf/041136.P.pdf The docket for the Supreme Court case is at http://www.supremecourtus.gov/docket/05-128.htm Thanks, Mac