Lui-M Corp. v. Garland Corp. (In Re Garland Corp.)

MEMORANDUM AND RULING ON MOTION TO DISMISS

HAROLD LAVIEN, Bankruptcy Judge.

Lui-M, a Florida corporation that subcontracts the manufacture of clothing out of yarn furnished by the Chapter 11 debtor, brought a complaint to establish a lien covering $354,682.91 due it. The Chapter 11 debtor (hereafter called Garland) conceded the lien in the amount of $160,312.42 covering work performed on the goods in the possession of Lui-M on April 29, 1980, the date of the filing of the Chapter 11. In accordance with a stipulation the goods were released on payment of $160,312.42. Garland created an escrow…