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IN RE WOODFIELD

No. 91-35794.

978 F.2d 516 (1992)

In re Blair B. WOODFIELD, Debtor. In re Marie Z. WOODFIELD, Debtor. In re Parley A. PEARCE, Debtor. In re Deanna PEARCE, Debtor. EMMETT VALLEY ASSOCIATES, Plaintiff-Appellant, v. Blair B. WOODFIELD; Marie Z. Woodfield; Parley A. Pearce; Deanna Pearce; Quality Foods, Inc., an Oregon Corporation, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided October 22, 1992.

Attorney(s) appearing for the Case

Robert A. Wyler, Dillon, Colo., for plaintiff-appellant.

Daniel F. Vidas, Dunn, Carney, Allen, Higgins & Tongue, Portland, Or., for defendants-appellees.

Before BEEZER, NOONAN and TROTT, Circuit Judges.

NOONAN, Circuit Judge:

Blair B. and Marie Z. Woodfield and Parley A. and Deanna Pearce (Debtors) sought discharge in bankruptcy under Chapter 7. A creditor, Emmett Valley Associates (EVA), objected. The bankruptcy court overruled EVA's objections and the district court affirmed. We reverse.

FACTS

The Debtors as partners operated two "Wendy's Famous Hamburgers" restaurants in Walla Walla, Washington and LaGrande, Oregon, pursuant to a franchise from...

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