In Re H. Russell Pace, D/B/A Seward's Folly, Debtor. H. Russell Pace John E. Havelock John R. Strachan v. Kenneth W. Battley, Trustee

17 F.3d 395 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel.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 H. Russell PACE, d/b/a Seward's Folly, Debtor. H. Russell PACE; John E. Havelock; John R. Strachan, Appellants, v. Kenneth W. BATTLEY, Trustee, Appellee. No. 92-36787. United States Court of Appeals, Ninth Circuit. Submitted Feb. 3, 1994. * Decided Feb. 24, 1994. Before: GOODWIN, SCHROEDER and NORRIS, Circuit Judges. 1 MEMORANDUM ** 2 The sole issue in this case is whether the trustee in the appellants' Chapter 7 bankruptcy proceeding abandoned the estate's interest in a malpractice claim that ultimately was settled on behalf of the appellant for $150,000. The Bankruptcy Court ruled that the claim had not been abandoned and that the settlement proceeds were the property of the estate. A Ninth Circuit Bankruptcy Appellate Panel affirmed, and Pace appeals. We affirm. 3 In 1984, Pace sold his interest in a night club to a third party and, in exchange, took a note in the amount of $360,000. The note was secured…