In re Morris

(Bankr. W.D. Ky. Sep. 28, 2017)

The bankruptcy court holds that the creditor’s lien is a judicial lien subject to avoidance under § 522(f) rather than a statutory lien. The creditor properly recorded a mechanic’s lien against the debtor’s property, and then filed suit prior to the one-year period expiring after the filing. However, the complaint filed sought a judgment for breach of contract rather than enforcement of the mechanic’s lien. The creditor then recorded a judgment lien following entry of a default judgment. The bankruptcy court concludes that the statutory process for perfecting the mechanic’s lien was not followed—the mechanic’s lien dissolved after the one-year period and the creditor held only a judicial lien at the time the bankruptcy petition was filed. Opinion below.

Judge: Lloyd

Attorney for Debtor: Allan E. Dunaway

Attorney for Creditor: Stiller Waterman LLC, David M. Cantor

2017-09-28 – in re morris

Author: Matt Lindblom

JJPM, Inc. v. Keen Exploration, LLC (In re JJPM, Inc.)

(Bankr. W.D Ky. Nov. 12, 2015)

The bankruptcy court finds that the defendant’s mechanic’s lien is void for being untimely filed. Applying Illinois’s mechanic’s lien statute, the court finds that the last work that could give rise to a lien occurred in May 2014, more than 90 days prior to the recording of the lien in January 2015 (Illinois requires notice of a mechanic’s lien within 90 days of the last date service was provided). The defendant’s alleged work in October 2014, consisting of reviewing reports about the project and conveying such information, did not add value to the real property. Thus, that date could not be used as the last date of service under the statute. Original and amended opinions below.

2015-11-12 – jjpm v keen exploration

2015-11-13 – jjpm v keen exploration amended

Author: Matt Lindblom