In re: JEFFREY KENT GRACY
- Summarized by Steven Mulligan , Coan, Payton & Payne, LLC
- 8 years 9 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 16-3281 (10th Circuit, May 24,2017) Not Published
- Tag(s):
-
- Ruling:
- The Kansas Manufactured Home Act is not the exclusive means for determining when a mobile home is a fixture for purposes of the attachment of a security interest and courts are free to also look at Kansas common law to make such a determination.
- Procedural context:
- The chapter 7 trustee brought an adversary proceeding under § 544 to avoid an unperfected lien encumbering a mobile home. The bankruptcy court ruled against the trustee who appealed to the District Court which reversed and remanded. On remand, the bankruptcy court concluded that there was an unperfected lien and it could be avoided. The 10th Circuit affirmed reviewing the court’s factual findings for clear error and conclusions of law de novo.
- Facts:
- Debtor and his wife bought land in Kansas and moved a mobile home on to in which debtor lived continuously for 20 years and deemed it his homestead and permanent home. Prior to filing bankruptcy, debtor took out 2 loans both of which were secured by the real property. Since the mortgage did not reference the mobile home, the bankruptcy court concluded that no lien was created and thus, nothing to avoid. The district court vacated that decision concluding that the mortgage’s property description included all fixtures and on remand, the bankruptcy court concluded that the mobile home was a fixture under Kansas common law and that the lien was not properly perfected and thus, could be avoided.
- Judge(s):
- Briscoe, Holmes, Phillips
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