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IN RE MAINLINE EQUIPMENT, INC.

No. 15-60069.

865 F.3d 1179 (2017)

IN RE MAINLINE EQUIPMENT, INC., DBA Consolidated Repair Group, Debtor, Los Angeles County Treasurer & Tax Collector, Appellant, v. Mainline Equipment, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed July 31, 2017.

Attorney(s) appearing for the Case

Barry S. Glaser (argued), Susan M. Freedman , and Jacquelyn H. Choi , Steckbauer Weinhart LLP, Los Angeles, California, for Appellant.

Vanessa M. Haberbush (argued) and David R. Haberbush , Haberbush & Associates LLP, Long Beach, California, for Appellee.

Walter J. de Lorrell, III , Senior Deputy; Thomas E. Montgomery , County Counsel; Office of County Counsel, San Diego, California; for Amici Curiae California State Association of Counties and California Association of County Treasurers and Tax Collectors.

Before: Kim McLane Wardlaw and Consuelo M. Callahan, Circuit Judges, and Gordon J. Quist, District Judge.

OPINION

May the County of Los Angeles enforce a lien on the personal property of a Chapter 11 debtor in possession, when the County has failed to perfect the lien as against a bona fide purchaser? Under 11 U.S.C. § 545(2), the answer is no, as the Bankruptcy Appellate Panel ("BAP") held in reliance on our decision...

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