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IN RE CLUB DEVELOPMENT & MANAGEMENT CORP.

BAP No. SC-82-1030HGE, Bankruptcy No. 8100176-M.

27 B.R. 610 (1982)

In re CLUB DEVELOPMENT & MANAGEMENT CORPORATION, dba Pala Mesa Resort, dba Tennis Club Development And Management Corporation, Debtor. MARK IV PROPERTIES, INC., Appellant, v. CLUB DEVELOPMENT & MANAGEMENT CORPORATION, dba Pala Mesa Resort dba Tennis Club Development And Management Corporation, Appellee.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided December 1, 1982.

Attorney(s) appearing for the Case

Gary S. Mobley, Goldman, Gordon & Lipstone, and Peter Aronson, Jay N. Hartz, Gary S. Mobley, Weissburg & Aronson, Inc., Los Angeles, Cal., for appellant.

Charles D. Christopher, Sullivan & Jones, San Diego, Cal., for appellee.

Before HUGHES, GEORGE and ELLIOTT, Bankruptcy Judges.

OPINION

HUGHES, Bankruptcy Judge:

This is an appeal from an order authorizing the debtor to pay salaries to corporate employees in an inactive Chapter 11 case. We reverse.

I.

Club Development and Management Corporation, (CDMC) and Mark IV, Inc. formed a joint venture to operate Pala Mesa Resort in January 1980, with each owning a 50% interest, CDMC is owned by the Leonard family members, who are...

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