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In re Northern Beef Packers Limited Partnership

Bankr. No.: 
Date of Decision: 
April 10, 2015
Whether the holder of a mechanic's lien is entitled to recover its pre-petition attorney fees under S.D.C.L. § 44-9-42 and its post-petition attorney fees and interest on its allowed fully secured claim under 11 U.S.C. § 506(b)?
The mechanic's lien holder is entitled to post-petition interest at the state law rate of 10 percent on its allowed fully secured claim through the conclusion of the trial on its claim. However, since the South Dakota Supreme Court has narrowly interpreted S.D.C.L. § 44-9-40 and the lien holder did not bring either the state court foreclosure action or the adversary proceeding, and because the lien holder did not establish a sufficient factual foundation, it is not entitled to recover its attorney fees under S.D.C.L. chapter 44-9.
Full Bankruptcy Court Decision: