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IN RE GOODMAN

Nos. 91-55456, 91-55571 and 91-55458.

991 F.2d 613 (1993)

In re David GOODMAN, d/b/a S.F.D. Imports, Sendo Stores, Brass Discount, Debtor. JOHNSTON ENVIRONMENTAL CORPORATION, Successor to International Packaging Corporation, Plaintiff-Appellee-Cross-Appellant, v. James E. KNIGHT; John A. Knight; Mary Katherine Knight, Individually, and Trustees of the Katherine McClellan Knight Revocable Trust UTA June 2, 1987, Defendants-Appellants-Cross-Appellees. In re David GOODMAN, d/b/a S.F.D. Imports, Sendo Stores, Brass Discount, Debtor. JOHNSTON ENVIRONMENTAL CORPORATION, Successor to International Packaging Corporation; Santa Ana Properties; David Goodman, Plaintiffs-Appellees, v. James E. KNIGHT; John A. Knight; Mary Katherine Knight, Individually, and Trustees of the Katherine McClellan Knight Revocable Trust UTA June 2, 1987, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided April 23, 1993.

Attorney(s) appearing for the Case

William G. Malcolm, Malcolm, Cisneros & Houser, Irvine, CA, Gerard R. Kilroy, Howard, Kulik & Chizever, Los Angeles, CA, William A. Francis, Glendale, CA, for plaintiffs-appellees-cross-defendants-appellants.

Peter M. Appleton, Tyre, Kamins, Katz & Granof, Los Angeles, CA, for defendants-appellants-cross-plaintiffs-appellees.

Before: NORRIS, REINHARDT, and TROTT, Circuit Judges.

TROTT, Circuit Judge:

OVERVIEW

James A. Knight, John A. Knight, and Mary Katherine Knight (collectively "the Knights") own commercial rental property ("the Property") in Santa Ana, California. David Goodman, a Chapter 11 debtor in bankruptcy as of September 1, 1988 ("the Debtor"), was a subordinate sub-sublessee of a portion of the Property. The Debtor acquired this leasehold interest from International Packaging Corporation ("IPC"), the predecessor...

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