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IN RE VARNER

BAP No. NC-97-1640-RRYN, Bankruptcy No. 96-13117, Adversary No. 97-1076.

219 B.R. 867 (1998)

In re Carrol G. VARNER, Debtor. A.O. SMITH WATER PRODUCTS CO., Appellant, v. Carrol G. VARNER, and United States Trustee, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided March 31, 1998.

Attorney(s) appearing for the Case

Russell F. Rowen, Lerner & Veit, P.C., San Francisco, CA, for A.O. Smith Water Products Co., appellant.

John H. MacConaghy, Law Offices of John H. Mac Conaghy, Oakland, CA, for Carrol G. Varner, appellee.

Before RUSSELL, RYAN, and NIELSEN, Bankruptcy Judges.

OPINION

RUSSELL, Bankruptcy Judge.

The debtor filed a complaint to avoid a creditor's abstract of judgment under § 544(a)(3).2 The bankruptcy court entered judgment in favor of the debtor, and the creditor appeals. For the reasons set forth below, we REVERSE the bankruptcy court's judgment.

I. FACTS

The material facts are not in dispute. Appellant Carrol G. Varner ("Varner") owned a one-half interest...

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