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IN RE CIC INV. CORP.

BAP No. NV-94-1761-MeAsH. Bankruptcy No. 94-30584-JHT.

175 B.R. 52 (1994)

In re CIC INVESTMENT CORPORATION, Debtor. FIRST INTERSTATE BANK OF NEVADA, N.A., Appellant, v. CIC INVESTMENT CORPORATION, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 6, 1994.

Attorney(s) appearing for the Case

Bridget Robb Peck, Reno, NV, for appellant.

William D. Cope and Alan R. Smith, Reno, NV, for appellee.

Before MEYERS, ASHLAND and HAGAN, Bankruptcy Judges.

OPINION

MEYERS, Bankruptcy Judge:

I

The bankruptcy court allowed a law firm with a prepetition secured claim against the debtor's property to represent that debtor as general counsel in the bankruptcy case. We hold that a professional with a claim secured by the debtor's property should be viewed as not disinterested as a matter of law.

We REVERSE.

II

FACTS

CIC Investment Corporation ("Debtor") filed...

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