Reedsburg Utility Commission v. Grede Foundries, Inc. (In Re Grede Foundries, Inc.), 651 F.3d 786

Grede Foundries, Inc. filed for Chapter 11 bankruptcy; Reedsburg Utility Commission (municipal) was owed over $1.3 million in prepetition utility charges.
Reedsburg, months after Grede's filing and despite the automatic stay, initiated Wisconsin-law processes to collect the arrearage by creating a potential lien via a property tax mechanism.
Wisconsin law §66.0809(3) requires a sequence: October 15 notices, November 15 deadline, and November 16 reporting to the county so that the delinquent amount becomes a lien against Grede's property.
Grede moved for stay enforcement; bankruptcy court found no stay violation initially but ordered all parties to refrain from actions to create or perfect a lien.
The bankruptcy court later held that Reedsburg violated the stay by sending notices and reporting delinquencies; district court affirmed; the Seventh Circuit reviews de novo.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether §362(b)(3) applies to perfection of a prepetition interest	Reedsburg acquired a prepetition interest when it billed or delivered services and could perfect under §546(b)(1)(A).	No prepetition enforceable interest was acquired; Wisconsin process creates only accounts until statutory steps are completed.	No §362(b)(3) interest; no prepetition interest acquired.
Whether §362(b)(9) applies to tax-like assessments of utility charges	Utility charges can be treated as tax-like assessments that may proceed without violating the stay.	Utility charges are not taxes; §362(b)(9) does not permit collection under the automatic stay.	Not taxes; §362(b)(9) does not apply.
Whether §362(b)(18) applies to special tax or assessment liens	Delinquent utility charges are special taxes/assessments and fall within §362(b)(18).	Delinquent utility charges are not taxes or special assessments; §362(b)(18) does not apply.	Charges do not qualify as special taxes or assessments; §362(b)(18) does not apply.

In re 229 Main St. Ltd. P'ship, 262 F.3d 1 (1st Cir. 2001) (stay exceptions interpreted narrowly; broad stay protection)
Parr Meadows Racing Ass'n, Inc., 880 F.2d 1540 (2d Cir. 1989) (prepetition interests and 546(b) timing context)
Makoroff v. City of Lockport, N.Y., 916 F.2d 890 (3d Cir. 1990) (analysis of prepetition rights and 546(b))
AR Accessories Grp., Inc., 345 F.3d 454 (7th Cir. 2003) (statutory liens and when they arise; wage lien analogy)
In re Glasply Marine Indus., Inc., 971 F.2d 391 (9th Cir. 1992) (limits of § 546(b) and 'ever-present' interest concept)