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Algonquin Power Income Fund v. Christine Falls of N.Y. Inc.

Ruling
Claim against proceeds of engineering malpractice judgment based on security interest predating the judgment properly disallowed.
Procedural posture

Chapter 11 debtors filed an adversary proceeding in the bankruptcy court seeking a declaration that creditors did not have a security interest in an escrow. The bankruptcy court granted summary judgment for the debtors, and the district court affirmed. The United States Court of Appeals for the Second Circuit vacated and remanded.

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Commercial opinion summary, case decided on October 25, 2011 , LexisNexis #0112-103