In Re David J. May Laura A. May, Debtors. David J. May v. Garnett U. Morrow Marya I. Morrow

5 F.3d 537 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. In re David J. MAY; Laura A. May, Debtors. David J. MAY, Appellant, v. Garnett U. MORROW; Marya I. Morrow, Appellees. No. 92-36986. United States Court of Appeals, Ninth Circuit. Submitted Aug. 5, 1993. * Decided Sept. 1, 1993. Appeal from the Ninth Circuit Bankruptcy Appellate Panel, BAP No. AK-91-1145; Judges Ashland, Jones and Volinn, Presiding. Bkrtcy App 9 AFFIRMED. Before: SCHROEDER, FLETCHER, and ALARCON, Circuit Judges. 1 MEMORANDUM ** 2 In 1985, Garnett and Marya Morrow purchased a landscaping business from appellant, and Chapter 7 debtor, David May. The purchase price was $120,000, representing $104,000 for equipment and machinery, $3,000 for contracts, $12,000 for a non-competition agreement, and $1,000 for the business name. At the time of the sale, May permitted the Morrows to rely upon a financial statement that failed to disclose that the equipment and machinery were subject to a perfected lien in…