Bank of New York Mellon v. Phally Lang

620 F. App'x 883, 542 B.R. 883

• Court: Court of Appeals for the Eleventh Circuit
• Decided: October 15, 2015
• Docket: 14-11373
• Status: Unpublished

Opinion

PER CURIAM:

ON REMAND FROM THE SUPREME COURT OF THE UNITED STATES

In Bank of N.Y. Mellon v. Lang (In re Lang), 580 Fed.Appx. 890 (11th Cir.2014), this Court affirmed the district court’s af-firmance of the bankruptcy court’s order voiding a wholly unsecured second priority lien on residential property owned by a •Chapter 7 debtor. In doing so, the panel relied on existing precedent in McNeal v. GMAC Morg., LLC (In re McNeal), 735 F.3d 1263 (11th Cir.2012), and in Folen-dore v. United States Small Bus. Admin., 862 F.2d 1537 (11th Cir.1989), in which this Court concluded that an allowed claim that was wholly unsecured was voidable under section 506(d).

The Supreme Court has now granted certiorari, vacated our judgment, and remanded the case to us for further consideration in the light of its decision in Bank of America, N.A. v. Caulkett, — U.S. -, 135 S.Ct. 1995, 192 L.Ed.2d 52 (2015).

In Caulkett, the Supreme Court concluded expressly that “a debtor in a Chapter 7 bankruptcy proceeding may not void a junior mortgage lien under § 506(d) when the debt owed on a senior mortgage hen exceeds the current value of the collateral.” Id. (emphasis added). As a result, this Court’s decisions in McNeal and in Folen-dore are no longer good law. See Bank of Am., N.A. v. Waits (In re Waits), 793 F.3d 1267,1268 (11th Cir.2015).

Accordingly, we deny Appellant’s motion for summary reversal, vacate the district court’s judgment, and remand the case for further proceedings consistent with Caulk-ett and with this opinion.

VACATED AND REMANDED.