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MATTER OF LEMCO GYPSUM, INC.

No. 89-8706.

911 F.2d 1553 (1990)

In the Matter of LEMCO GYPSUM, INC., Debtor. ALLIED EASTERN STATES MAINTENANCE CORPORATION; Chatham County, Georgia; and Combustion Engineering, Inc., Plaintiffs-Appellees, v. L.E. MILLER, Jr.; L.E. Miller, III, Frank B. Miller; Randall B. Miller and Robert N. Miller, Defendants-Appellants.

United States Court of Appeals, Eleventh Circuit.

September 18, 1990.

Attorney(s) appearing for the Case

Mark Bulovic, G. James McCallar, Jr., McCallar & Associates, Savannah, Ga., for defendants-appellants.

Morton G. Forbes, John A. Foster, Ranitz, Mahoney, Forbes & Coolidge, Savannah, Ga., for plaintiff-appellee Allied Eastern States Maintenance Corp.

Wade W. Herring, II, Hunter, Maclean, Exley & Dunn, Savannah, Ga., for plaintiff-appellee Combustion Engineering, Inc.

Edward T. Brennan, Chatham County Atty., Savannah, Ga., for plaintiff-appellee Chatham County, Ga.

Before CLARK, Circuit Judge, MORGAN and RONEY, Senior Circuit Judges.

RONEY, Senior Circuit Judge:

L.E. Miller, Jr. and his four sons appeal the district court's affirmance of the bankruptcy judge's order subordinating, on equitable grounds, certain of their claims against the debtor, Lemco Gypsum, Inc. Finding that the bankruptcy and district courts articulated the proper standard for exercise of the equitable subordination power, but that they, nevertheless, misapplied that standard to the facts surrounding one of the claims in this...

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