IN RE FILTERCORP, INC.

No. 97-35483.

163 F.3d 570 (1998)

In re FILTERCORP, INC., Filtercorp Partners Limited Partnership, Debtor. Henry PAULMAN, Appellant, v. GATEWAY VENTURE PARTNERS III, L.P.; Gateway III Filtercorp, Inc.; Charles A. Brickman; Donald H. Eskes; Filtercorp, Inc.; Filtercorp Partners, L.P.; Meridian Properties, Appellees.

United States Court of Appeals, Ninth Circuit.

Decided December 14, 1998.


Attorney(s) appearing for the Case

William J. Murphy, Cairncross & Hempelmann, P.S., Seattle, Washington, for the appellant.

Edwin K. Sato, Bucknell Stehlik, Seattle, Washington, and Sheena R. Aebig and Eric S. Carlson, Williams, Kastner & Gibbs, Seattle, Washington, for the appellees.

Before: D.W. NELSON and KOZINSKI, Circuit Judges, and SCHWARZER, Senior District Judge.


SCHWARZER, Senior District Judge:

We must decide whether under Washington law a security agreement that grants an interest in "inventory" or "accounts receivable," without more, presumptively includes after-acquired inventory or accounts receivable. The bankruptcy court and Bankruptcy Appellate Panel (BAP) held that to secure after-acquired property, an express after-acquired property clause is required. We reverse, holding that Washington law would presume security...

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