Bank of America, N.A. v. Outboard Marine Corp. (In Re Outboard Marine Corp.)

304 B.R. 844, 2004 Bankr. LEXIS 68, 2004 WL 194073
United States Bankruptcy Court, N.D. Illinois·Decided January 29, 2004·No. 19-02687·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

JOHN H. SQUIRES, Bankruptcy Judge.

These matters come before the Court on two motions. First, Counter-Plaintiff Federal-Mogul Corporation (“Federal-Mogul”) has moved for partial summary judgment pursuant to Federal Rule of Bankruptcy Procedure 7056 and Federal Rule of Civil Procedure 56 on the complaint filed by Counter-Defendant Bank of America, N.A. (the “Bank”), seeking a determination of the validity and priority of a hen in the proceeds of certain tooling that Outboard Marine Corporation and its related debtor entities (collectively, “OMC”) sold to Bombardier Motor Corporation of America (“Bombardier”). In addition, the Bank has moved to strike portions of the affidavit of Richard Harvey, which was submitted in support of Federal-Mogul’s motion for partial summary judgment.

For the reasons stated herein, the Court finds that Federal-Mogul failed to assert its lien according to the notice requirement set forth in the relevant Indiana Fabricator’s Lien Statute and that, therefore, Federal-Mogul is not entitled to judgment in its favor as a matter of law. Accordingly, the Court denies Federal-Mogul’s motion, and its third affirmative defense is dismissed. Further, the Court grants the Bank’s motion to strike portions of Harvey’s affidavit. In so doing, the Court strikes the last sentence of paragraph 7 of the affidavit, the corresponding assertion in paragraph 7 of Federal-Mogul’s 7056-1 statement, and the language in paragraph 10 of the affidavit which refers to “the customs in Federal-Mogul’s industry.”

I. JURISDICTION AND PROCEDURE

The Court has jurisdiction to entertain these matters pursuant to 28 U.S.C. § 1334 and Internal Operating Procedure 15(a) of the United States District Court for the Northern District of Illinois. They are core proceedings under 28 U.S.C. § 157(b)(2)(A), (K), and (O).

II. APPLICABLE STANDARDS

A. Summary Judgment

In order to prevail on a motion for summary judgment, the movant must meet the statutory criteria set forth in Rule 56 of the Federal Rules of Civil Procedure, made applicable to adversary proceedings by Federal Rule of Bankruptcy Procedure 7056. Rule 56(c) reads in part:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

Fed.R.Civ.P. 56(c). See also Dugan v. Smerwick Sewerage Co., 142 F.3d 398, 402 (7th Cir.1998).

The primary purpose for granting a summary judgment motion is to avoid unnecessary trials when there is no genuine issue of material fact in dispute. Trautvetter v. Quick, 916 F.2d 1140, 1147 (7th Cir.1990); Farries v. Stanadyne/Chi. Div., 832 F.2d 374, 378 (7th Cir.1987) (quoting Wainwright Bank & Trust Co. v. Railroadmens Fed. Sav. & Loan Ass’n of Indianapolis, 806 F.2d 146, 149 (7th Cir.1986)). Where the material facts are not in dispute, the sole issue is whether the *850 moving party is entitled to a judgment as a matter of law. ANR Advance Transp. Co. v. Int’l Bhd. of Teamsters, Local 710, 153 F.3d 774, 777 (7th Cir.1998). In 1986, the United States Supreme Court decided a trilogy of cases which encourages the use of summary judgment as a means to dispose of factually unsupported claims. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The burden is on the moving party to show that no genuine issue of material fact is in dispute. Anderson, 477 U.S. at 248, 106 S.Ct. 2505; Celotex, 477 U.S. at 322, 106 S.Ct. 2548; Matsushita, 475 U.S. at 585-86, 106 S.Ct. 1348.

All reasonable inferences drawn from the underlying facts must be viewed in a light most favorable to the party opposing the motion. Parkins v. Civil Constructors of Ill., Inc., 163 F.3d 1027, 1032 (7th Cir.1998). The existence of a material factual dispute is sufficient only if the disputed fact is determinative of the outcome under applicable law. Anderson, 477 U.S. at 248, 106 S.Ct. 2505; Frey v. Fraser Yachts, 29 F.3d 1153, 1156 (7th Cir.1994). “[S]ummary judgment is not an appropriate occasion for weighing the evidence; rather, the inquiry is limited to determining if there is a genuine issue for trial.” Lohorn v. Michal, 913 F.2d 327, 331 (7th Cir.1990). The Seventh Circuit has noted that trial courts must remain sensitive to fact issues where they are actually demonstrated to warrant denial of summary judgment. Opp v. Wheaton Van Lines, Inc., 231 F.3d 1060, 1065-66 (7th Cir.2000); Szymanski v. Rite-Way Maint. Co., 231 F.3d 360, 364 (7th Cir.2000).

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Bank of America, N.A. v. Outboard Marine Corp. (In Re Outboard Marine Corp.), 304 B.R. 844, 2004 Bankr. LEXIS 68, 2004 WL 194073 (Ill. 2004).

304 B.R. 844 (Bank of America, N.A. v. Outboard Marine Corp. (In Re Outboard Marine Corp.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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