Egg Crate, Inc. v. Kossman (In Re Egg Crate, Inc.)

MEMORANDUM OPINION

BERNARD MARKOVITZ, Bankruptcy Judge.

Before the Court are Plaintiffs’ (“Debtors”) Complaints To Determine Secured Status of Defendants Paul Kossman (“Landlord”) and Sheraden Bank (“Shera-den”), and an Order directing distribution of sale proceeds held by their counsel which are subject to competing claims by Kossman and Sheraden.

Debtors maintain that the liens of Shera-den were perfected prior in time, and therefore, superior to any valid landlord’s liens.

Kossman, the landlord, contends that pursuant to state law his liens are superior to Sheraden’s, and that he is entitled…