IN RE KAISER STEEL CORP.

Civ. A. No. 89-K-1731.

110 B.R. 514 (1990)

In re KAISER STEEL CORP., et al., Debtor. KAISER STEEL RESOURCES, INC., Plaintiff, v. Irwin L. JACOBS, et al., Defendants.

United States District Court, D. Colorado.

January 22, 1990.


Attorney(s) appearing for the Case

H. Thomas Coghill, G. Stephen Long, Coghill & Goodspeed, Denver, Colo., and Susan M. Freeman, Lewis & Roca, Phoenix, Ariz., for Kaiser Steel Corp.

Rosalind C. Cohen, Katharine Gresham, Joseph H. Harrington, SEC, Washington, D.C., and Thomas D. Carter, Regional Trial Counsel, SEC, Denver, Colo., for party in interest SEC.

Kenneth L. Baker, Michael H. Berger, Waldbaum, Corn, Koff & Berger, Denver, Colo., for National Finances Service Corp.

Thomas H. Young, Michael J. Guyerson, Rothgerber, Appel, Powers & Johnson, Denver, Colo., for Charles Schwab & Co., Inc.

David I. Blejwas, Rosanne M. Thomas, Hahn & Hessen, New York City, for Bear Stearns and Co., Cowen & Co., Doft & Co., Inc., L.F. Rothschild & Co., Inc., Unterberg Towbin, Shearson Lehman Bros./American Express Inc., Smith, Barney, Harris, Upham & Co., Inc.

Richard S. Vermeire, Thomas H. Keyse, Dwight K. Shellman III, Moye, Giles, O'Keefe, Vermeire and Gorrell, Denver, Colo., for Bear Stearns & Co., Cowen & Co., Doft & Co. Inc., L.F. Rothschild & Co., Inc., Unterberg, Towbin, Shearson Lehman Bros./American Express, Inc., Smith, Barney, Harris, Upham & Co., Inc., Tweedy Brown Clearing Corp., Fahnestock & Co., Edward A. Vinert & Co., First Albany Corp., Tucker, Anthony & R.L. Day, Inc., Thomson McKinnon & Co., Inc., and Kellner, DiLeo & Co., Inc.

Robert A. Zupkus, Zupkus & Ayd, P.C., Denver, Colo., for AmSouth Bank, N.A.

David B. Rosenman, Lewis, D'Amato, Brisbois, Bisgaard, Los Angeles, Cal., for Bank of New England and Bank of New England-West.

William D. Nelson, Asst. Gen. Counsel, Denver, Colo., for Boettcher & Co., Inc.

John B. Moorhead, Theodore Shih, Baker & Hostetler, Denver, Colo., for Drexel Burnham Lambert, Inc.

J. Michael Morgan, Lohf Shaiman & Ross, P.C., Denver, Colo., Sara E. Moss, C. Willima Phillips, Howard, Darby & Levin, New York City, for Brown Brothers Harriman & Co.

James J. Moylan, James J. Moylan & Associates, Chicago, Ill., for Burke, Christensen, & Lewis Securities, Inc.

John S. Lutz, Salie B. O'Malley, Kelly, Stansfiled & O'Donnell, Denver, Colo., for Chicago Corp., Piper, Jaffray & Hopwood, Speak, Leeds & Kellogg and SLK-SEG, and Tweedy Brown Clearing Corp.

Barry L. Wilkie, Charles R. Beach, W. Bruce Thompson, Shaw, Spangler & Roth, Denver, Colo., P. Kevin Casterl, Susan Harkins, Cahill, Gordon & Reindel, New York City, for Dillon, Read & Co. Inc.

Karen Johnson-McKewan, Brobeck, Phleger & Harrison, San Francisco, Cal., for Wells Fargo and Crocker Nat. Bank.

Jeffrey A. Kehl, McGuire & Tierman, New York City, for Kellner, DiLEO & Co., Inc.

Michael H. Du Boff, Salon, Marrow & Dyckman, New York City, for Ernst & Co.

Michael Heitner, Herrick, Feinstein, New York City, for Evans & Co., Inc.

Paul L. Matecki, Boca Raton, Fla., for JW Charles Securities, Inc.

Robert Swanson, Hamilton, Myer, Swanson, Faatz & Clark, Denver, Colo., for Josephthal & Co. Inc. and Herzfeld & Stern, nka JII Securities, Inc.

Jay G. Epstein, Shearman & Sterling, New York City, for Lewco Securities Corp.

Edwin G. Perlmutter, M. Frances Cetrulo, Howard B. Gelt, Berenbaum & Weinshienk, P.C., Denver, Colo., for National Bank of Detroit, May Financial Corp., Manufacturers and Traders Trust Co. and Bankers Trust of New York.

Douglas R. Ferguson, Hopper, Kanouff, Smith, Peryam and Terry, Denver, Colo., for Olde Discount Corp.

William C. Roush, Freud, Markus, Slavin & Galgan, Troy, Mich., for Roney & Co.

Luke J. Danielson, Laurie K. Rottersman, Gersh & Danielson, Denver, Colo., for Stifel Nicolaus & Co.

Jacques A. Machol, Jr., Jacques A. Machol, III, Randall D. Johnson, Machol & Machol, P.C., Denver, Colo., for U.S. Trust Co. of New York.

Dennis C. Brown, Munger, Tolles & Olson, Los Angeles, Cal., Robert F. Hill, Karen A. Tomb, Hill & Robbins, Denver, Colo., for Pacific & Co.

Martin P. Unger, Gaston & Snow, New York City, James A. Shpall, Wolf & Slatkin, P.C., Denver, Colo., for Securities Settlement Corp.

Mark Grobmyer, Arnold, Grobmyer & Haley, Little Rock, Ark., Harold A. Feder, Feder, Morris, Tamblyn & Goldstein, Denver, Colo., for Stephens, Inc.


MEMORANDUM OPINION AND ORDER

KANE, Senior District Judge.

This is an appeal from the bankruptcy court's September 25, 1989, ruling denying the motion of Charles Schwab & Co., Inc. for summary judgment in the Jacobs1 action. There were no disputed issues of fact. Schwab argued that it was entitled to summary judgment because it was a mere conduit in the stock redemption transactions which occurred as part of the 1984...

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