Linear Electric Company Opinion

Third Circuit’s opinion affirming bankruptcy and district court rulings that post-petition liens filed by suppliers pursuant to the New Jersey Construction Lien Law when the contractor has filed a bankruptcy violate the automatic stay, notwithstanding the fact that the liens were filed against projects owned by non-debtor third parties. The post-petition lien filings impacted the debtor-contractor’s ability to collect on the receivables due from the project owners, and thus the lien filings were acts in violation of the automatic stay which impacted property of the debtor-contractor’s bankruptcy estate.

Linear Electric Company Opinion