In re Tacoma Aviation Center, Inc.
United States Bankruptcy Court for the Western District of Washington
23 B.R. 326 (1982)
- Written by Douglas Halasz, JD
Facts
Albert and Miriam Lavine gave Rainier National Bank (Rainier Bank) (plaintiff) a security interest in their airplane. Rainier Bank properly perfected its security interest in the airplane. Thereafter, the Lavines took their airplane to Tacoma Aviation Center (Tacoma) (defendant) for the installation of new propeller blades. The Lavines could not pay Tacoma for the work, so Tacoma kept possession of the airplane. Tacoma subsequently filed for bankruptcy. During bankruptcy proceedings, Tacoma sought to remove and sell the propeller blades from the airplane. Rainier Bank moved for a preliminary injunction enjoining Tacoma from removing the propeller blades from the airplane. Tacoma argued that its statutory mechanic’s lien on the propeller blades had priority over Rainier Bank’s prior perfected security interest in the whole airplane.
Rule of Law
Issue
Holding and Reasoning (Skidmore, J.)
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