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IN RE MISSION HEIGHTS INVESTORS LTD. PARTNERSHIP

Bankruptcy No. 89-3507 TUC LO, Adv. No. A94-0219.

202 B.R. 131 (1996)

In re MISSION HEIGHTS INVESTORS LIMITED PARTNERSHIP, an Arizona Limited Partnership, Debtor. Richard S. CLARKE, a Married Man in His Sole and Separate Capacity; Dan W. Clarke, Jr., a Married Man in His Sole and Separate Capacity; and Margaret A. Kelly, a Married Woman in Her Sole and Separate Capacity, Plaintiffs, v. MISSION HEIGHTS INVESTORS, INC., an Arizona Corporation; and Mission Heights Investors Limited Partnership, an Arizona Limited Partnership, Defendants.

United States Bankruptcy Court, D. Arizona.

Order Supplementing Decision September 25, 1996.

Attorney(s) appearing for the Case

Mark L. Collins, Tucson, AZ, and Michael D. Stofko, Tucson, AZ, for Plaintiffs.

George J. Feulner, Tucson, AZ, for Mission Heights Investors, Inc.

Eric Slocum Sparks, Tucson, AZ, for Mission Heights Investors Limited Partnership.

MEMORANDUM DECISION

JAMES M. MARLAR, Bankruptcy Judge.

The trial in this matter came on regularly for hearing on the 31st day of July, and the 1st day of August, 1996. After considering all of the evidence, exhibits, briefs, witness testimony, applicable law, and arguments of counsel, the Court now rules.

PROCEDURAL INTRODUCTION

At the beginning of the hearing, the parties stated that the trial should be divided into two phases:...

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