13 Collier bankr.cas.2d 50, Bankr. L. Rep. P 70,525 Algeran, Inc. v. Advance Ross Corporation, Stern & Miller, P.C., Davis M. Stern and Andrew S. Pauly, Non-Party

759 F.2d 1421 13 Collier Bankr.Cas.2d 50 , Bankr. L. Rep. P 70,525 ALGERAN, INC., Plaintiff-Appellant, v. ADVANCE ROSS CORPORATION, et al., Defendants-Appellees. Stern & Miller, P.C., Davis M. Stern and Andrew S. Pauly, Non-Party Appellants. Nos. 84-5761, 84-5773. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 5, 1985. Decided May 9, 1985. Kevin M. Brandt, Thomas J. McDermott, Jr., Laurence J. Hutt, James I. Ham, Kadison, Pafaelzer, Woodard Quinn & Rossi, Los Angeles, Cal., for plaintiff-appellant. Barbara A. Reeves, Donald I. Berger, Los Angeles, Cal., for defendants-appellees. Appeal from the United States District Court for the Central District of California. Before CHAMBERS, BOOCHEVER and BEEZER, Circuit Judges. CHAMBERS, Circuit Judge: 1 In late 1982, appellee Advance Ross sold its stock in AMI Industries, Inc., a wholly-owned subsidiary, to appellant Algeran, Inc., taking promissory notes for a portion of the sales price, with the AMI stock pledged as security. Algeran thereafter filed this action in district court claiming damages relating to the stock purchase. Advance Ross counterclaimed. 2 Discovery was undertaken and by December, 1983,…