Judge v. Bank (In Re Lorimal, Inc.)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

The issue before the Court is whether a lien arising from a landlord’s distraint or a lien arising from an Article 9 security interest has priority against the proceeds of the sale of a liquor license. The Interim Trustee John P. Judge, filed the instant complaint to sell the debtor’s liquor license free and clear of liens. The defendants, Louis Slater t/a Rising Sun Plaza Associates, and Girard Bank, both claimed a first lien position in the liquor license. At the trial, all parties agreed that the sale should go forward and the liens be…