Tobkin

ORDER

This is an appeal brought pursuant to 28 U.S.C. section 158 (a) of the December 26, 1989 Decision of the Bankruptcy Court of the Northern District of California allowing the dischargeability of debts arising out of an accountancy partnership dissolution. Appellant David D. Tobkin contends that the bankruptcy court committed reversible error in ruling that the debts were not nondischargeable pursuant to 11 U.S.C. § 523 (a). For the following reasons, the Court hereby AFFIRMS the order of the bankruptcy court.

I. BACKGROUND

The parties in this action are former partners in a public accounting practice. Initially, the appellant, David D. Tobkin (“Tobkin”), owned a 30% interest and Brad Lighty (“Lighty”) owned a 70% interest in the public accounting partnership of Lighty & Tobkin. In early 1979, Tobkin approached the respondent, Gary Waltrip (“Waltrip”), about purchasing a portion of Lighty’s share of the partnership. In June of 1979, Tobkin and Waltrip entered into a partnership agreement for the practice. Waltrip gave Lighty a second deed of trust on Waltrip’s residence in the amount of $42,000 in exchange for the title to cash, prepaid expenses, and used office furniture…