IN RE SANTA FE ADOBE, INC.

BAP No. AZ-82-1482-AsAbE, Bankruptcy No. B 81-0050-PHX RM, Adv. No. 81-55.

34 B.R. 774 (1983)

In re SANTA FE ADOBE, INC., Debtor. Claude PITRAT, Trustee, Plaintiff, v. John MORRIS and Jane Doe Morris, Lee Ahnlund and Jane Doe Ahnlund, Defendants.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided October 26, 1983.


Attorney(s) appearing for the Case

Richard M. Lorenzen, O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, Phoenix, Ariz., for plaintiff.

John W. Rood, Mahoney, Lehman, Rood, Rempe & Spears, P.C., Phoenix, Ariz., for defendants.

Before ASHLAND, ABRAHAMS and ELLIOTT, Bankruptcy Judges.


OPINION

ASHLAND, Bankruptcy Judge:

INTRODUCTION

The Chapter 7 trustee appeals from a bankruptcy court order holding that the doctrine of res judicata barred his litigating the validity of a security interest in bankruptcy court. We reverse.

Before bankruptcy, the debtor and certain creditors entered into an agreement for the purchase and sale of a double axle tractor and trailer. By the terms...

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