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IN RE PARIS INDUSTRIES CORP.

Civ. No. 91-0016 B-H.

132 B.R. 504 (1991)

In re PARIS INDUSTRIES CORPORATION, et al., Debtors. PARIS MANUFACTURING CORPORATION, formerly known as Leander Acquisition Corporation, Plaintiff-Appellee, v. ACE HARDWARE CORPORATION and Hesse Hardware, Inc., Defendants-Appellants, and The United States of America, on behalf of the United States Navy, Defendant.

United States District Court, D. Maine.

October 8, 1991.

Attorney(s) appearing for the Case

Frederick Emery, Asst. U.S. Atty., Portland, Me., for U.S.

John F. Lambert, Jr., Black, Lambert, Coffin, & Rudman, Portland, Me., Timothy V. Hoffman, Sanchez & Daniels, Chicago, Ill., for Ace Hardware.

Barry L. Kroll, Williams & Montgomery, Chicago, Ill., Rubin G. Segal, Portland, Me., for Paris Mfg.

Richard Abbondanza, So. Portland, Me., for Ace Hardware Corp.

Sara Cook, McKenna, Storer, Rowe, White & Farbug, Chicago, Ill., for Hesse Hardware.

MEMORANDUM OF DECISION

HORNBY, District Judge.

This bankruptcy appeal presents the question whether a federal bankruptcy court has the authority to enjoin a state court products liability suit brought against the purchaser of a bankruptcy debtor's assets when the only theory of recovery is successor liability to the debtor. The bankruptcy court (Goodman, J.) here enjoined the action because it had previously ordered that the bankruptcy debtor's assets were...

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