IN RE DAVIS DISTRIBUTORS, INC.

Nos. 88-2076, 88-2077.

861 F.2d 416 (1988)

In re DAVIS DISTRIBUTORS, INC. (Two Cases). WILSON MUSHROOM COMPANY, Plaintiff-Appellee, v. DAVIS DISTRIBUTORS, INC.; Sovran Bank, N.A., Defendants-Appellants (Two Cases).

United States Court of Appeals, Fourth Circuit.

Decided November 15, 1988.

Rehearing Denied December 9, 1988.


Attorney(s) appearing for the Case

James Robert Schroll (Bean, Kinney, Korman & Moore, P.C., Arlington, Va., Herbert Rosenblum, Alan Rosenblum, Rosenblum & Rosenblum, P.C., Alexandria, Va., Bennett A. Brown, Gilliam, Sanders and Brown, Fairfax, Va., on brief), for defendants-appellants.

Bryan T. Veis (Peter L. Wellington, Paul P. Andrews, Steptoe & Johnson, Washington, D.C., on brief), for plaintiff-appellee.

Before WINTER, Chief Judge, and PHILLIPS and SPROUSE, Circuit Judges.


JAMES DICKSON PHILLIPS, Circuit Judge:

Davis Distributors, Inc. (Davis), a Chapter 11 debtor, appeals an order granting relief from the automatic bankruptcy stay, 11 U.S.C. § 362(a), to Wilson Mushroom Company (Wilson), which had supplied produce to Davis and is one of Davis' largest creditors. The district court found that Wilson was entitled to priority as to some estate assets over Davis' other creditors as the beneficiary of a "statutory trust" arising under...

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