United States Third Circuit

In a case concerning the relationship between the New Jersey Construction Lien Law and federal bankruptcy law, presenting the question of whether a supplier can file a construction lien under New Jersey law when the contractor has filed a petition for bankruptcy, which automatically stays any act to create or perfect any lien against the contractor's property, the district court's decision affirming the bankruptcy court's decision that the automatic stay prevented filing the liens is affirmed where: 1) the accounts receivable were part of the bankruptcy estate because they complied with the definition of property of the estate under 11 U.S.C. section 541; and 2) the ability of a supplier to create a construction lien depended on the existence of the bankrupt contractor's accounts receivable.

Appellate Information

• Published 2017/03/30

Judges

• ROTH

Court

• United States Third Circuit

Counsel