First National Bank v. Crescent Electric Supply Co. (In Re Renaissance Hospital Grand Prairie Inc.)
2013 U.S. App. LEXIS 6945
| 5th Cir. | 2013Background
- RHGP purchased hospital site Aug 31, 2006; MetroBank recorded its deed of trust Sept 1, 2006.
- RHGP contracted IPS for plumbing and MPES for electrical work for renovation.
- MetroBank later funded additional financing; the deed of trust secured both loans.
- Liens were recorded by MPES (Jan 15, 2008), Crescent (Mar 14, 2008), IPS (Feb 13, 2008), and Hajoca (Feb 1, 2008).
- RHGP filed Chapter 11 (Aug 21, 2008), converted to Chapter 7 (Sept 23, 2009); district court reversed bankruptcy court, leading to final affirmance in 2015.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Beanland’s stipulation binds IPS on lien inception date | IPS bound by Beanland’s stipulation | Beanland lacked IPS’s counsel authority | IPS bound by stipulation; presumption favorable to late inception date |
| Whether lien claimants’ stipulations pre-discovery are conclusive | Stipulations limited to pre-trial proceedings | Stipulations create strong presumptions | Stipulations create strong presumption; not overcome by discovery timing |
| Whether MPES’s representations negate presumptions | MPES’s representations show pre- Sept 1 work | Representations contradicted by records and timing | MPES cannot overcome presumptions; pre- Sept 1 work not established |
| Standard of review and application to Diversified/Stern/Anderson framework | Bankruptcy court errors under Stern/Anderson | Proper deference to bankruptcy findings | Bankruptcy findings reversed; final affirmed under proper standard |
Key Cases Cited
- Diversified Mortgage Investors v. Lloyd D. Blaylock General Contractor, Inc., 576 S.W.2d 794 (Tex. 1978) (defines inception criteria for mechanic’s liens (visibility, delivery, permanence))
- Sprint Commc’ns Co. v. APCC Servs., Inc., 554 U.S. 269 (U.S. 2008) (imputation/privity considerations in assignment context)
- Anderson v. Bessemer City, 470 U.S. 564 (U.S. 1985) (clear error standard and credibility deference)
- Stern v. Marshall, 131 S. Ct. 2594 (U.S. 2011) (limits on core proceedings and scope of bankruptcy review)