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Civil Procedure Construction Bankruptcy

Read Civil Procedure updates, alerts, news, and legal analysis from leading lawyers and law firms:

The Bankruptcy And Construction Junction: Making Your Texas Mechanic’s Lien Function Better In Bankruptcy

by Cole Schotz on

In order to secure a real property owner’s payment obligation, contractors, mechanics, materialmen, and other workmen are often granted a lien referred to by a variety of names including, materialmen’s liens, workmen’s liens,...more

Construction Liens Filed by Suppliers in New Jersey After Contractor’s Filing of Bankruptcy Petition Are Barred by the Automatic...

by Pepper Hamilton LLP on

In re: Linear Electric Co., Inc., No. 16-1477, 2017 U.S. App. Lexis 5527 (3d Cir., March 30, 2017) - This case concerns whether suppliers, Cooper Electrical Supply Co. and Samson Electrical Supply Co. (“Suppliers”),...more

The Enforceability of Mechanic’s Liens in Bankruptcy is Dependent on State Law

In a recent decision by the Third Circuit Court of Appeals, the Court held that a mechanic’s lien filed by an unpaid supplier against a construction project, after the contractor through whom the materials were furnished...more

Third Circuit Holds That Post-Petition Filing of NJ Construction Lien Violates the Automatic Stay

by Seyfarth Shaw LLP on

On March 30, the Third Circuit Court of Appeals filed an opinion regarding whether the filing of a mechanic’s lien after the commencement of a bankruptcy case violates the automatic stay. Given the frequent involvement of ...more

How to enforce adjudication decisions and deal with insolvency

by Dentons on

Adjudications on the increase - Anecdotal evidence suggests that adjudications are still on the increase. This increase is supported by the statistics in the Adjudication Society's 15th report, which shows a 5 per cent...more

SOPA takes a backseat: The role of cross-demands in setting aside statutory demands issued pursuant to judgments made in terms of...

by Dentons on

The High Court has ruled that a statutory demand based on a judgment pursuant to an adjudication determination made under the Building and Construction Industry Security of Payment Act (SOPA) can be set aside on the ground...more

Affirmed: New York’s Application of the In Pari Delicto Doctrine Bars Faithless Servant Claim and Bankruptcy Insider Exception

by Cole Schotz on

A recent decision of the United States District Court for the Southern District of New York (the “District Court”), affirming a decision of the United States Bankruptcy Court for the Southern District of New York (the...more

Construction Briefing - Legal changes affecting construction businesses from 1 October 2015

by Dentons on

1 October 2015 ushers in a number of legal changes which affect construction businesses operating in the UK. We have provided brief highlights of some of the changes below. If you need further information, please contact us...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

by Foley & Lardner LLP on

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

Illinois Court Holds that Engineering Plat Did Not Improve Land, Rendering Mechanics Lien Invalid

by Miller Canfield on

The Illinois Appellate Court invalidated an engineering firm’s mechanics lien for platting of undeveloped land performed as due diligence before a sale, because the services provided by the firm did not increase or improve...more

Nevada Supreme Court Addresses Private Sale Through Receivership

by Ballard Spahr LLP on

In U.S. Bank, N.A. v. Palmilla Development, Co., Inc., the Nevada Supreme Court recently confirmed that a receiver’s sale is a form of foreclosure sale that triggers a secured party’s right to a deficiency judgment. This...more

Construction Contracts: Nothing Beats a Meeting of the Minds

by Pepper Hamilton LLP on

Waldschmidt v. Singletary Construction LLC (In re Tackett), 516 B.R. 498 (Bankr. M.D. Tenn. 2014) – A bankruptcy trustee sought turnover of profits from the sale of homes constructed by a contractor. The trustee...more

Equitable Subordination: Construction Lenders Beware

by Pepper Hamilton LLP on

Atlantic Builders Group, Inc. v. Old Line Bank (In re Prince Frederick Inv., LLC), 516 B.R. 778 (Bankr. D. Md. 2014) – A construction contractor contended that the claim of the debtor’s construction lender should be...more

Bankruptcy by the Developer/Owner: Mechanics Lien Rights May Still Prevail!

by Nossaman LLP on

The rate of bankruptcies among construction industry participants is higher than some think. The bankruptcy of a developer creates an “automatic stay” under federal law preventing almost all collection activities, including...more

When Your General Contractor Files Bankruptcy

by Pepper Hamilton LLP on

The case is Branch Banking & Trust Co. v. Construction Supervision Services Inc. (In re Construction Supervision Services Inc.), 753 F.3d 124 (4th Cir. 2014). After a general contractor filed bankruptcy, several of its...more

Subcontractor Claims: What Can You Do Once Your General Contractor Files Bankruptcy?

by Pepper Hamilton LLP on

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) – After a general contractor filed bankruptcy, several of its...more

Nevada Supreme Court Clarifies Mechanic and Materialman Lien Issues

by Snell & Wilmer on

On August 7, 2014, the Nevada Supreme Court issued two opinions dealing with the priority of mechanics’ liens and the proof required for a materialman to establish a lien. These cases provide valuable guidance to lenders,...more

Mississippi District Court Defers to New York Court in Bond Action

The United States District Court for the Northern District of Mississippi denied the motion of defendant ACA Financial Guaranty Corporation (ACA) to dismiss a class action complaint, finding that the issues were previously...more

Your Last Resort: The Unpaid Account

by Gray Reed & McGraw on

A suit on an unpaid account against your customer will likely entitle you to the principal balance plus interest and attorney fees. But a suit on an unpaid account is only as good as your customer’s ability to satisfy the...more

Bankruptcy Court Delivers Next Chapter In Developing Law Regarding Post-Petition Lien Perfection By Subcontractors

by Poyner Spruill LLP on

In a prior alert (Subcontractors and Suppliers Win Support for Lien Perfection During North Carolina Bankruptcies) we told you about the order from the United States District Court for the Eastern District of North Carolina...more

Subcontractors Take Note - Appellate Division Confirms That Construction Lender Has No Duty To Subcontractor Absent Express...

by Cole Schotz on

The New Jersey Appellate Division recently ruled in Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania, Docket No. A-3844-10T1 (March 5, 2012), that a construction lender has no obligation to pay an...more

Subcontractors and Suppliers Win Support for Lien Perfection During North Carolina Bankruptcies

by Poyner Spruill LLP on

By order issued on February 23, 2012, the United States District Court for the Eastern District of North Carolina vacated the bankruptcy court’s decision in In re Mammoth Grading, Inc. This decision and the companion decision...more

Involuntary Bankruptcy as a Collection Tool

by Zumwalt Law Group on

Although the tactic does not receive much publicity, the filing of an involuntary bankruptcy petition against a business debtor can be an effective collection tool under the right circumstances. Learn the requirements and...more

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