5th Circ. Blocks Contractor Claims Against Bankrupt Hospital

Law360, Dallas (April 8, 2013, 8:16 PM EDT) -- The Fifth Circuit on Friday blocked contractors and subcontractors from maintaining a priority lien against bankrupt Renaissance Hospital Grand Prairie Inc., saying their unpaid work on a failed $26 million renovation for the Texas hospital must take a backseat to lenders’ claims.

Affirming a federal district court decision, a Fifth Circuit panel said a bankruptcy court had clearly erred when it allowed contractors Innovative Plumbing Services Inc. and Metropolitan Professional Electrical Services Inc. to file mechanic’s liens on the hospital. The facts showed the companies had...
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