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IN RE DALEY

No. 84-2639.

776 F.2d 834 (1985)

In re Donald O. DALEY, Debtor. Walter L. FRANK, individually and as Trustee of the Walter L. Frank, M.D., Ltd., Employees Pension Plan; and Joan H. Frank, his wife, Plaintiffs-Appellants, v. Donald O. DALEY and Don Daley Enterprises, aka Daley Enterprises; Patricia L. Daley, his wife, only as to her marital community with Donald O. Daley, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided November 13, 1985.

Attorney(s) appearing for the Case

James M. Marlar, Phoenix, Ariz., Stephen R. Kaufmann, Springfield, Ill., for plaintiffs-appellants.

Lester L. Penterman, Phoenix, Ariz., for defendants-appellees.

Before REINHARDT, BEEZER and HALL, Circuit Judges.

BEEZER, Circuit Judge:

Creditors in a Chapter 7 bankruptcy proceeding appeal the judgment of the district court affirming the bankruptcy court's dismissal of creditors' adversary claim of nondischargeability. We reverse and remand.

I

In February of 1981, the appellants, Walter and Joan Frank, filed suit against Donald Daley in United States District Court for the District of Arizona.1 The complaint alleged twenty-one...

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