In Re Bruce F. Dailey Michaele P. Dailey, Debtors. Mercedes-Benz Credit Corporation v. Bruce F. Dailey Michaele P. Dailey

17 F.3d 394 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel.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 Bruce F. DAILEY; Michaele P. Dailey, Debtors. MERCEDES-BENZ CREDIT CORPORATION, Appellant, v. Bruce F. DAILEY; Michaele P. Dailey, Appellees. No. 92-36891. United States Court of Appeals, Ninth Circuit. Submitted Feb. 4, 1994. * Decided Feb. 24, 1994. Before: REAVLEY, ** SKOPIL, and LEAVY, Circuit Judges. 1 MEMORANDUM *** 2 Mercedes-Benz Credit Corporation ("MBCC") sought to enforce the liquidated damages clause of an automobile lease against Bruce and Michaele Dailey ("Debtors"). 1 The bankruptcy court held in favor of the Debtors and MBCC appealed to the Bankruptcy Appellate Panel ("BAP"). The BAP affirmed the bankruptcy court's ruling, albeit on a different ground, and MBCC has timely appealed. For the reasons which follow, we reverse and remand. 3 By a 2-1 majority, the BAP upheld the bankruptcy court's decision on a legal theory that was neither argued by the parties nor based on facts in evidence,…