IN RE FIRST CAPITAL MORTG. LOAN CORP.

No. 87-1748.

917 F.2d 424 (1990)

In re FIRST CAPITAL MORTGAGE LOAN CORPORATION, a Utah Corporation, Debtor. RESEARCH-PLANNING, INC., Plaintiff-Appellant, v. Roger G. SEGAL, Trustee of First Capital Mortgage Loan Corporation, a Utah corporation, Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

Rehearing Denied November 20, 1990.


Attorney(s) appearing for the Case

Claron C. Spencer and Dale E. Anderson, of Spencer & Anderson, Salt Lake City, Utah, for plaintiff-appellant.

John T. Morgan and Julie A. Bryan, of Cohne, Rappaport & Segal, P.C., Salt Lake City, Utah, for defendant-appellee.

Before HOLLOWAY, Chief Judge, and SETH, McKAY, LOGAN, SEYMOUR, MOORE, ANDERSON, TACHA, BALDOCK, BRORBY and EBEL, Circuit Judges.


SEYMOUR, Circuit Judge.

This case presents the question whether funds placed in escrow with the debtor, who improperly used them to pay debts owed to a good faith creditor, constitute part of the bankruptcy estate when recovered by the trustee in settlement of a preference action.1 A divided panel of our court reversed the decision of the bankruptcy and district courts and held that these funds never became part of the bankruptcy estate...

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