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MATTER OF HOLFORD

No. 89-2714.

896 F.2d 176 (1990)

In the Matter of Alden D. HOLFORD, Debtor. Alden D. HOLFORD, Appellant, v. Melvin Lane POWERS a/k/a Mel Powers and Mel Powers d/b/a Mel Powers Investment Builder, Appellee.

United States Court of Appeals, Fifth Circuit.

March 16, 1990.

Attorney(s) appearing for the Case

Alden D. Holford, Houston, Tex., pro se.

Yocel Alonso, MacNaughton, Alonso, Vander, Lyn, Leufven & Cernonsky and Thomas M. Fulkerson, Morris & Cambpbell, Houston, Tex., for appellee.

Before GEE, GARZA and DAVIS, Circuit Judges.

GARZA, Circuit Judge:

Alden Holford appeals contempt penalties imposed against him for violation of the automatic stay in Powers' bankruptcy proceeding when he offset rents due against damages in a state court fraud claim. Because we find that his actions constituted a recoupment and not a setoff, we REVERSE the contempt holding.

FACTS

In March of 1982, a Vice-President of M. Lane Powers Investment Builder ("Powers") negotiated a lease with Holford...

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