First National Bank v. Crescent Electric Supply Co. (In re Renaissance Hospital Grand Prairie Inc.)

Summarized by Craig Geno , Law Offices of Craig M Geno, PLLC
12 years 11 months ago

Citation:

Case Number 12-10386 Fifth Circuit Court of Appeals

Tag(s):

Ruling:

The 5th Circuit upheld the District Court's reversal of the Bankruptcy Court's decision in a lien priority dispute between material suppliers/mechanics lien claimants and secured creditors, placing heavy emphasis upon stipulations of counsel in pretrial proceedings. In dicta, the 5th Circuit noted that the secured creditors asserted a Stern v. Marshall challenge as to whether disputes invloving the extent, validity or proirity of liens are core proceedings as contemplated under 11 USC Sec 157(b)(2)(K). The Court stated that the Lenders' arguments were "highly implausible" and that "the determination of the priority of liens is not likely such an encroachment" [upon the Judicial Branch posed by Section 157(b)(2)} as would be prohibited by Stern.

Procedural context:

Appeal to the 5th Circuit from a decision of the District Court that had reversed, in part, a decision of the Bankruptcy Court.

Facts:

The main issue on appeal involved conflicting liens and priorities between secured creditors and material suppliers/mechanics lien claimants on a failed construction project involving application of the Texas mechanics lien statutes. There were significant factual disputes involving pretrial stipulations and supplments to those stipulations as well.

Judge(s):

Stewart, Davis and Clement

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