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IN RE MORGAN-BUSBY

BAP No. SC-01-1121-RyBMa, Bankruptcy No. 99-03999, Adversary No. 01-90028.

272 B.R. 257 (2002)

In re David MORGAN-BUSBY and Jennifer Morgan, Debtors. David Morgan-Busby, Jennifer Morgan, and Autolife USA, Inc., Appellants, v. Leslie T. Gladstone, Chapter 11 Trustee, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided January 7, 2002.

Attorney(s) appearing for the Case

L. Scott Keehn, Robbins & Keehn, San Diego, CA, for David Morgan-Busby, Jennifer Morgan, Autolife USA, Inc.

Martin A. Eliopulos, Higgs, Fletcher & Mack, San Diego, CA, for Leslie T. Gladstone, Chapter 11 Trustee.

Before: RYAN, BRANDT, and MARLAR, Bankruptcy Judges.

OPINION

RYAN, Bankruptcy Judge.

After David Morgan-Busby and Jennifer Morgan ("Debtors") filed a chapter 111 petition, they claimed shares of stock (the "Shares") in Auto Life USA, Inc. ("Auto Life") as exempt under California law. Leslie T. Gladstone, the chapter 11 trustee ("Trustee"), later filed a complaint (the "Complaint") seeking to have the Shares turned over to the estate.

Trustee sought, and the bankruptcy...

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