23 A 194, 23 B 6782
Chapter 11 Debtor/Plaintiff filed an adversary proceeding against five defendants, seeking to determine the extent, validity and priority of their liens and interests against its assets. Plaintiff reached agreement with four of the five defendants. The fifth defendant, Eby-Brown, raised several arguments in opposition to Plaintiff’s contention that its claim was unsecured. HELD: First, to determine whether Eby-Brown holds a secured claim, and its priority among the competing defendants, the court must consider the issue of perfection. Eby-Brown did not file a financing statement, and so it did not perfect its lien under state law. The court rejected Eby-Brown’s request to treat a state court complaint and asset freeze order as “equitable perfection.” The court also declined to create an equitable lien, which in any event would have been subordinated to the Debtor’s status as a hypothetical lien creditor. Finally, the court held that the Rooker-Feldman doctrine did not apply. Judgment entered in favor of Plaintiff.