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IN RE STEARMAN

BAP No. NC-00-1228-RRyP. Bankruptcy No. 99-30906-WDM-7. Adversary No. 99-3132 DM.

256 B.R. 788 (2000)

In re Carolyn D. STEARMAN, aka Carolyn Stearman Damato, Debtor. Lucia Prado, Appellant, v. Carolyn D. Stearman, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 7, 2000.

Attorney(s) appearing for the Case

Steven Iriki, Law Offices of Mattaniah Eytan, Corte Madera, CA, for Lucia Prado.

Linda L. Mallette, Law Offices of Mallette & Libonati, San Mateo, CA, for Carolyn D. Stearman.

Before: RUSSELL, RYAN, and PERRIS, Bankruptcy Judges.

OPINION

RUSSELL, Bankruptcy Judge.

The appellant loaned $50,000 to the appellee and the appellee's husband, relying on assurances by her accountant and the couple's attorney that they would be able to repay her. These assurances were made in view of a large inheritance the appellee stood to receive before the loan came due. The appellee received the inheritance and gave a portion of it to her husband with the instruction to repay the loan. He did not, however...

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