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IN RE C-L CARTAGE CO., INC.

Civ-1-87-190, Bankruptcy No. 1-84-00334, Adv. No. 1-85-0036.

113 B.R. 416 (1988)

In re C-L CARTAGE COMPANY, INC., Debtor. Thomas E. RAY, Trustee, Plaintiff/Appellee, v. AUTOMOTIVE PARTS EXCHANGE, Industrial Tire, City Bank & Trust, Mercury Motor Express, Associates Commercial Corp., American National Bank, and Corroon & Black of Chattanooga, Inc., Defendants/Appellants.

United States District Court, E.D. Tennessee, S.D.

March 25, 1988.

Attorney(s) appearing for the Case

Harold L. North, Jr., Chattanooga, Tenn., for plaintiff.

B. Timothy Pirtle, McMinnville, Tenn., for defendant.

MEMORANDUM

EDGAR, District Judge.

This case is before the Court on cross appeals from the March 11, 1987 decision of the Honorable Ralph H. Kelley, Chief United States Bankruptcy Judge for the Eastern District of Tennessee. 70 B.R. 928. The relevant facts, as determined by the bankruptcy court, are as follows:

On or before March 1983, Carlos Foster, the president of C-L Cartage Company, approached City Bank & Trust...

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