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IN RE WARD

BAP No. 98-6063WM.

230 B.R. 115 (1999)

In re Marilyn Kaye WARD, aka Marilyn Kaye Webb, Debtor. Erlene W. Krigel, Appellee, v. Sterling National Bank, Appellant.

United States Bankruptcy Appellate Panel of the Eighth Circuit.

Decided February 8, 1999.

Attorney(s) appearing for the Case

Allan B. Gallas, Kansas City, MO, for appellant. Mark J. Schultz, Kansas City, MO, on brief.

Erlene W. Krigel, Kansas City, MO, for appellee. Karen S. Rosenberg, Kansas City, MO, on the brief.

Before: WILLIAM A. HILL, DREHER, and EDMONDS, Bankruptcy Judges.

EDMONDS, Bankruptcy Judge.

This is an appeal of the bankruptcy court's decision that the debtor's transfer of a security interest in her car to Sterling National Bank (Sterling) was avoidable as a preference under the Bankruptcy Code. We reverse. We do so based upon application of the earmarking doctrine, a theory of the case never presented to the bankruptcy court.

I. FACTS

In 1996, Marilyn Kaye Ward (Ward) obtained a loan from Arcadia Financial...

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