Tag Archives: priority of interests

PACA Claims: Beware of PACA Trusts Providing Special Protection to Perishable Agricultural Commodities Sellers

S & H Packing & Sales Co., Inc. v. Tanimura Distrib., Inc. (In re Tanimura, Distrib., Inc.), 850 F.3d 446 (9th Cir. 2017) – Produce growers who sold to a debtor/distributor on credit sued a factoring agent that acquired accounts … Continue reading

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Recording Requirements: When “Duly Acknowledged” Is Not Enough

DeGiacomo v. First Call Mortgage Company (In re Reznikov), 548 B.R. 606 (Bankr. D. Mass. 2016) – A chapter 7 trustee sought to avoid a recorded mortgage based on a defective acknowledgment and then to preserve the lien of the … Continue reading

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Mortgage Priority: And What About Equitable Subrogation?

Stambaugh v. PNC Bank, N.A. (In re Stambaugh), 532 B.R. 572 (Bankr. M.D. Pa. 2015) – A chapter 13 debtor sought to establish the priority of certain mortgages, and the bank that held all of the mortgages attempted to reorder the … Continue reading

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Sale “Free and Clear”: Adequate Protection of Nothing is Nothing

In re Elk Grove Village Petroleum, 510 B.R. 594 (Bankr. N.D. Ill. 2014) – After substantially all of the debtors’ assets were sold in a bankruptcy sale, a secured lender and a state tax authority made competing claims for turnover … Continue reading

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Dragnet Clauses: Sometimes They Don’t Work as Hoped, and Sometimes They Do

In re Presser, 504 B.R. 452 (Bankr. S.D. Ohio 2014) – A judgment lien creditor objected to a joint debtors’ chapter 11 plan of reorganization based on a dispute with a mortgagee about whether its mortgages secured guaranty obligations of … Continue reading

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Claim Priority: Construction Lien Meets Mortgage – Who Wins?

ROK Builders, LLC v. 2010-1 SFG Venture LLC (In re Moultonborough Hotel Group, LLC), 726 F.3d 1 (1st Cir. 2013) – After the owner of a newly constructed hotel filed bankruptcy, the assignee of the construction mortgage sought a declaration that … Continue reading

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Cross-Collateralization: Your Dragnet Clause May Have at Least a Little Hole In It

Peoples National Bank, N.A. v. Banterra Bank, 719 F.3d 608 (7th Cir. 2013) – In this case, the district court had reversed the bankruptcy court – holding that a standard dragnet clause in a mortgage was not sufficient to secure a … Continue reading

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