In Re John T. Lansford and Cecily S. Lansford, Debtors. La Trattoria, Inc. v. John T. Lansford and Cecily S. Lansford, John T. Lansford, Cross-Appellant v. La Trattoria, Inc., Cross-Appellee

822 F.2d 902 16 Bankr.Ct.Dec. 496 , Bankr. L. Rep. P 71,917 In re John T. LANSFORD and Cecily S. Lansford, Debtors. La TRATTORIA, INC., Appellant, v. John T. LANSFORD and Cecily S. Lansford, Appellees. John T. LANSFORD, Cross-Appellant, v. La TRATTORIA, INC., Cross-Appellee. Nos. 86-2586, 86-2587. United States Court of Appeals, Ninth Circuit. Argued and Submitted May 13, 1987. Decided July 22, 1987. James F. Polese, Phoenix, Ariz., for appellant/cross-appellee. Michael W. Carmel, Phoenix, Ariz., for appellees/cross-appellant. Appeal from a decision of the Bankruptcy Appellate Panel; Elliott, Abrahams & Ashland, District Judges, Presiding. Before WALLACE and KENNEDY, Circuit Judges, and KELLEHER, * District Judge. KENNEDY, Circuit Judge: 1 This is an appeal from a decision of the Bankruptcy Appellate Panel (the Panel). The Panel affirmed the trial court's decision that debtor John Lansford could not be discharged from a debt because of his fraud; but it reversed as to his wife Cecily, holding she was entitled to a discharge from the debt because she did not participate in or ratify her husband's misconduct. Because we think the trial court did not commit clear error in finding…