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In re Ehring

United States Court of Appeals for the Ninth Circuit
900 F.2d 184 (1990)


Ehring (plaintiff) took out a loan from Coast Home Loans, Inc. (Coast). The resulting promissory note was secured by a deed of trust, the second on the property. Coast assigned the deed to Western Community Moneycenter (Western) (defendant). Ehring defaulted. On February 22, 1985, Western purchased the property at the trustee’s sale for approximately $200,000, which was the amount of Ehring’s debt. On March 21, 1985, Western recorded the purchase. On April 18, 1985, Western agreed to sell the property to the Millers for $390,000. On May 21, 1985, Ehring filed for bankruptcy. Ehring brought suit against Western under section 547 of the Bankruptcy Code. Ehring sought repayment of the difference between the sale to the Millers and the amount due under the deeds of trust, arguing that the sale to the Millers was an avoidable preference transfer. The bankruptcy court granted Western summary judgment. The bankruptcy appellate panel affirmed. Ehring appealed.

Rule of Law


Holding and Reasoning (Farris, J.)

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