In Re VAN DE KAMP'S DUTCH BAKERIES

908 F.2d 517 59 USLW 2074 , 20 Bankr.Ct.Dec. 1228 , Bankr. L. Rep. P 73,525 In re VAN DE KAMP'S DUTCH BAKERIES, Debtor. The RETAIL CLERKS WELFARE TRUST; Retail Clerks Pension Fund and Washington Bakers Welfare Trust, Plaintiffs-Appellants, v. Michael McCARTY, Trustee; Donald L. Rudd and Rosemary Rudd, Defendants-Appellees. No. 88-4053. United States Court of Appeals, Ninth Circuit. Argued and Submitted Oct. 5, 1989. Decided July 16, 1990. Kirk McKenzie, Donaldson & Kiel, Seattle, Wash., for plaintiffs-appellants. Alan Wenokur, Erickson & Groshong, Seattle, Wash., for defendants-appellees. Appeal from the United States District Court for the Western District of Washington. Before NELSON, BOOCHEVER and TROTT, Circuit Judges. TROTT, Circuit Judge: 1 In this bankruptcy action, the district court upheld a Chapter 7 trustee's avoidance of a transfer and preservation of the interest for the benefit of the bankrupt's estate. In doing so, the court rejected appellants' arguments that a transfer that could have been avoided by a competing lienholder in a separate, prepetition state court action should not be susceptible to preservation under 11 U.S.C. Sec. 551 (1988). We have…