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IN RE FUEL OIL SUPPLY AND TERMINALING, INC.

Civ. A. No. H-85-4086.

72 B.R. 752 (1987)

In re FUEL OIL SUPPLY AND TERMINALING, INC. GULF OIL CORPORATION, Appellant, v. BANQUE DE PARIS ET DES PAYS-BAS and Lockwood National Bank of Houston, N.A., Appellees.

United States District Court, S.D. Texas, Houston Division.

April 9, 1987.

Attorney(s) appearing for the Case

Nancy Friedman Atlas, Sheinfeld, Maley & Kay, Houston, Tex., for Fuel Oil Supply & Terminaling, Inc., debtor.

William M. Schultz, Dotson, Babcock & Scofield, U. Lawrence Boze, Gulf Oil Corp., Law Dept., Houston, Tex., for Gulf Oil Corp., appellant-defendant-third party plaintiff.

Henry Kollenburg, Schlanger, Cook, Cohn, Mills & Grossberg, Houston, Tex., for Banque de Paris et des Pays-Bas, appellee-third party defendant.

Robert E. Goodman, Jr., Baker & Botts, Houston, Tex., for Banque de Paris et des Pays-Bas and Lockwood Nat. Bank of Houston.

MEMORANDUM ON APPEAL

HUGHES, District Judge.

Gulf Oil Corporation and Fuel Oil Supply and Terminaling, Inc., (Fosti) agreed to an exchange of gasoline. Product and monetary transfers made under the agreement from Fosti to Gulf were declared avoidable preferences by the bankruptcy court. Gulf appealed. This court finds that the exchange agreement established a bailment between Fosti and Gulf and concludes that the...

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