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IN RE ADBOX, INC.

No. 05-55158.

488 F.3d 836 (2007)

In re: ADBOX, INC., Debtor, Donald I. Metcalf, an individual; Janet M. Metcalf, an individual, Appellants, v. Jeffrey I. Golden, Chapter 7 Trustee, in his capacity as Chapter 7 Trustee for the Estate of Adbox, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed June 4, 2007.

Attorney(s) appearing for the Case

James A. Shalvoy, Manhattan Beach, CA, for the defendants-appellants.

Kathleen M. Goldberg, The Law Office of Thomas H. Casey, Inc., Rancho Santa Margarita, CA, for the plaintiff-appellee.

Before: PAMELA ANN RYMER, KIM McLANE WARDLAW, and MILAN D. SMITH, JR., Circuit Judges.

MILAN D. SMITH, JR., Circuit Judge.

Appellants Donald and Janet Metcalf were the primary financial backers of a start-up company named Adbox, Inc. In 1998, the Metcalfs agreed to sell their interest in Adbox to Christer Wernerdal, but Wernerdal soon failed to make payments required by the sales agreements. Wernerdal brought a lawsuit against the Metcalfs and later took Adbox into bankruptcy. The bankruptcy trustee initiated a preference action to recover a $21,035...

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