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IN RE SANTA FE DOWNS, INC.

Nos. 78-1457, 78-1458.

611 F.2d 815 (1980)

In re SANTA FE DOWNS, INC., a New Mexico Corporation, Bankrupt. Thomas J. DUNN, Trustee in Bankruptcy, Plaintiff-Appellee, v. Clinton B. EWELL, Jr., Harry L. Ewell, J. W. Eaves, Harry Eaves, Leonard Fruchtman and Lawrence T. Foster, Defendants-Appellants.

United States Court of Appeals, Tenth Circuit.

Decided January 3, 1980.

Rehearing Denied February 4, 1980.

Attorney(s) appearing for the Case

Ronald Segel of Sutin, Thayer & Browne, Albuquerque, N. M., for defendants-appellants Clinton B. Ewell, Jr., Harry L. Ewell, Leonard Fruchtman and Lawrence T. Foster.

William E. Snead of Ortega & Snead, Albuquerque, N. M., for defendants-appellants J. W. Eaves and Harry Eaves.

Jennie Deden Behles, Albuquerque, N. M. (Linda S. Bloom, Albuquerque, N. M., on brief), for plaintiff-appellee.

Before McWILLIAMS, BARRETT and McKAY, Circuit Judges.

McKAY, Circuit Judge.

Appellants hold mortgages against the property of bankrupt Santa Fe Downs, Incorporated. In bankruptcy court, the trustee was successful in voiding the mortgages as preferences. The district court upheld the bankruptcy court's determination. On appeal, the mortgagees challenge, among other things, the bankruptcy court's refusal to dismiss the suit for failure to show a "right to relief." Fed.R.Civ.P. 41(b). We believe this challenge to be meritorious...

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