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IN RE ARMSTRONG

No. 87-5613.

840 F.2d 651 (1988)

In re Charles ARMSTRONG, Debtor, Charles ARMSTRONG, Helen Armstrong, Petitioners-Appellees, v. DEPARTMENT OF REAL ESTATE, STATE OF CALIFORNIA, Respondent-Appellant.

United States Court of Appeals, Ninth Circuit.

Decided February 18, 1988.

Attorney(s) appearing for the Case

Elliot Lisnek, Los Angeles, Cal., for petitioners-appellees.

Diane Spencer Shaw, Deputy Atty. Gen., Los Angeles, Cal., for respondent-appellant.

Before ALARCON, NELSON and REINHARDT, Circuit Judges.

ALARCON, Circuit Judge:

I.

Defendant-Appellant Department of Real Estate, State of California (Department) appeals from the district court's order granting plaintiff-appellee Charles Armstrong (Armstrong) $20,000 from California's "Real Estate Recovery Fund" (the Fund). This is an adversarial proceeding in bankruptcy in which the substantive law of California applies. We reverse.

II.

Armstrong brought this action for fraud in the district...

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