In re California Land & Equipment Leasing Co.
Opinion
Lead Opinion
Woodward, J.
MEMORANDUM OPINION AND DECISION RE: RELIEF UNDER CHAPTER
An involuntary petition was filed alleging the above-named debtor to be subject to the provisions of Chapter 7 of the Bankruptcy Code. The debtor contends that it is not a proper party to be the subject of involuntary relief under the provisions of Chapter 7 of the Bankruptcy Code as it is a farmer within the definition set forth in Section 101[17] of the Bankruptcy Code.
A trial was held to determine whether or not at least 80 per cent of the debtor’s gross income was a result of farming.
The petitioning creditors contend that approximately 50 per cent of debtor’s income was from non-farming sources.
The debtor contends that all gross income with the exception of some rental income derived from an interest in a mall came from farming. A witness for the debtor indicated that the amount of income from the mall was 14.5 or 15.7 per cent depending upon the method of accounting.
Using the figures presented by the debt- or, debtor grew crops and received a gross income of $1,428,816.00 for the year in question. Debtor also contends that another $1,328,019.00 was contract income also as a result of farming.