In Re Collman & Karsky Architects, Inc.

ORDER AND MEMORANDUM OPINION ON MOTION TO SET DEADLINE FOR ASSUMING OR REJECTING EXECUTORY CONTRACT AND FOR ADEQUATE PROTECTION OR, IN THE ALTERNATIVE, STAY RELIEF

MICHAEL G. WILLIAMSON, Bankruptcy Judge.

Under Florida law, courts may impose an equitable lien on undisbursed contract proceeds in favor of a subcontractor if the subcontractor does not have any lien rights or other adequate remedy at law. That lien, however, may be avoided by a trustee (or debtor-in-possession) under the “strong-arm” powers of Bankruptcy Code § 544 where the subcontractor failed to obtain a consensual security…