O'Malley Lumber Co. v. Lockard (In re Lockard)

CYNTHIA HOLCOMB HALL, Circuit Judge:

This appeal involves issues of the jurisdiction of the bankruptcy court to decide a claim against a contractor’s license bond executed by a non-debtor third-party surety, Allied Fidelity Insurance Company (“Allied”), and collateralized with commercial real property of the debtor, John E. Lock-ard, d/b/a J.W.L. Construction (“Lock-ard”), where a creditor has commenced a state court action to proceed against the bond prior to the debtor’s filing of bankruptcy. The creditor in this case, O’Malley Lumber Company (“O’Malley”), timely appeals an order by which…