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In re Skyline Properties, Inc.
United States Bankruptcy Court for the Western District of Pennsylvania
134 B.R. 830 (1992)
Mealy (creditor) began construction work for Skyline Properties, Inc. (debtor) on April 20. The work included converting an old farmhouse into a sales office and building an addition to the farmhouse. The bank (creditor) issued a mortgage to Skyline on June 5. Mealy filed a mechanic’s lien for the work done on September 23. The bank filed a mortgage foreclosure action against Skyline. Skyline filed for bankruptcy. Mealy and the bank disputed the priority of their claims. Mealy asserted its mechanic’s lien went into effect on the date construction began and therefore had priority. The bank asserted the mechanic’s lien did not become effective until Mealy filed the lien.
Rule of Law
Holding and Reasoning (Bentz, J.)
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