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IN RE AFI HOLDING, INC.

BAP No. CG-05-1247-MaPaK, Bankruptcy No. LA 01-41567-VZ.

355 B.R. 139 (2006)

In re AFI HOLDING, INC., Debtor. Carolyn A. Dye, Chapter 7 Trustee, Appellant, v. J. Gregory Brown; Cecilia A. Brown, et al., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed October 25, 2006.

Attorney(s) appearing for the Case

James A. Dumas, Jr., Dumas & Associates, Deborah H. Eisen, Weinstein, Eisen & Weiss LLP., Los Angeles, CA, for Appellant.

Richard L. Weiner, Weiner & Laurin, LLP, Encino, CA, for Appellees.

Michael Jay Berger, Law Offices of Michael J. Berger, Beverly Hills, CA, for AFI Holding, Inc.

Before: MARLAR, PAPPAS and KLEIN, Bankruptcy Judges.

OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

The chapter 71 trustee has appealed the bankruptcy court's order of removal, which found that she was not disinterested due to a material conflict of interest. She contends that the bankruptcy court applied an incorrect legal standard under § 324, and challenges the court's findings.

We hold that the bankruptcy court properly applied a totality...

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