Construction Supervision Svcs v. Branch Banking & Trust

CSS, the debtor, filed a Chapter 11 bankruptcy petition in 2012. Acting as general contractor or as a first tier subcontractor, CSS placed orders with Subcontractors, the creditor. The court held that construction subcontractors entitled to a lien on funds under North Carolina law had an interest in property when the debtor contractor filed for bankruptcy, by which time the subcontractors had not yet served notice of, and thereby perfected, their liens. Because there is no dispute that the other criteria of the applicable bankruptcy stay exception have been met, the court held that the bankruptcy court and district court correctly allowed Subcontractors to serve notice of, and thereby perfect, their liens post-petition.View "Construction Supervision Svcs v. Branch Banking & Trust" on Justia Law