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IN RE LOS GATOS LODGE, INC.

No. 00-16916.

278 F.3d 890 (2002)

In re LOS GATOS LODGE INC., Debtor. Mohamed Poonja, Appellant, v. Alleghany Properties, Appellee.

United States Court of Appeals, Ninth Circuit.

Filed January 17, 2002.

Attorney(s) appearing for the Case

Seymour J. Abrahams, San Jose, California, for the appellant.

Jeffrey B. Gardner, Saxon, Barry, Gardner & Kincannon, APC, Newport Beach, California, for the appellee.

Before: MELVIN BRUNETTI, ANDREW J. KLEINFELD and SIDNEY R. THOMAS, Circuit Judges.

OPINION

THOMAS, Circuit Judge:

In this appeal, we consider whether a bankruptcy trustee may surcharge a creditor for necessary expenses in preserving property pursuant to 11 U.S.C. § 506(c) after the creditor's secured claim has been disallowed. We conclude that such a surcharge is improper and affirm the judgment of the district court.

I

Dr. Norman E. and Jean P. McFate owned and operated the Los Gatos Lodge and the real property...

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