California Steel Co. v. Dodds (In Re California Steel Co.)

MEMORANDUM OPINION

FREDERICK J. HERTZ, Bankruptcy Judge.

This cause of action involves a complaint by California Steel Company (hereinafter referred to as debtor) to avoid a mechanic’s lien claim made by J. Steve Dodds, d/b/a Dodds Engineering (hereinafter referred to as Dodds).

Prior to the institution of its Chapter 11 proceeding, the debtor was in the business of operating a steel plant, part of which was devoted to the operation of a steel rolling mill. 1 In 1978, the debtor began a rolling mill modernization project. 2 As part of this project, Dodds and the debtor entered into a contract in…