Palatine National Bank of Palatine v. Strom (In re Strom)

HENLEY, Senior Circuit Judge.

Palatine National Bank (Palatine) brought suit against Karen M. Strom (Strom) in bankruptcy court seeking to enforce a claimed lien on real property (the Carlton Property) in Strom’s bankruptcy estate. The bankruptcy court1 found Palatine had no lien on the property. The court also awarded attorney fees and costs to Strom per Palatine’s agreement to be contingently liable for them. Palatine appealed both rulings. On appeal, the district court2 affirmed the bankruptcy court’s ruling that there was no lien and reversed the award of attorney fees and costs. Palatine…