Bankr. L. Rep. P 71,803 in the Matter of Richard A. Kubly, Debtors. Wisconsin Department of Industry, Labor and Human Relations v. Marine Bank Monroe

EASTERBROOK, Circuit Judge.

The Wisconsin Department of Industry, Labor and Human Relations has a dispute with Marine Bank Monroe, Wisconsin, about what to do with the proceeds of a sale of assets belonging to Kubly Construction Company, Inc. The Department believes it is entitled to some $11,000 of the money as assignee of wage claims of the Construction Co.’s employees under Wis. Stat. 109.09(2). The Bank wants to keep the whole $63,000 on the ground that it had a perfected security interest in the property sold, an interest that survived in the proceeds and trumps the Department’s…