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IN RE LORETTO WINERY, LTD.

BAP Nos. NC-88-1575-MeMoV, NC-88-1626-MeMoV, Bankruptcy No. 4-85-04121 WA, Adv. No. 3-87-0654 TC (OAK).

107 B.R. 707 (1989)

In re LORETTO WINERY, LTD., Debtor. BELL FLAVORS & FRAGRANCES, INC., Appellant, v. Paul B. ANDREW, Trustee, Appellee.

United States Bankruptcy Appellate Panel for the Ninth Circuit.

Decided September 29, 1989.

Attorney(s) appearing for the Case

James S. Mori, Stokes, Welch & Stromsheim, San Francisco, Cal., for appellant.

Jeremy D. Weinstein, Buchalter, Nemer, Fields & Younger, San Francisco, Cal., for appellee.

Before MEYERS, MOOREMAN and VOLINN, Bankruptcy Judges.

OPINION

MEYERS, Bankruptcy Judge:

I

We are asked whether Section 547(c)(2)(C) of the Bankruptcy Code embodies an objective standard and whether an order awarding expenses pursuant to Rule 37 of the Federal Rules of Civil Procedure constituted an abuse of discretion. We AFFIRM.

II

FACTS

Loretto Winery, Ltd. ("Loretto") was supplied with natural and artificial flavorings to use in manufacturing consumer goods. The supplier...

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