783 Fed.Appx. 333 (5th Cir. 2019), 18-31035, In re M B Industries, L.L.C.

Docket Nº:18-31035
Citation:783 Fed.Appx. 333, 67 Bankr.Ct.Dec. 157
Opinion Judge:PER CURIAM:
Party Name:In the MATTER OF: M B INDUSTRIES, L.L.C., Debtor v. Hallwood Financial Limited; Hallwood Modular Buildings, L.L.C., Appellees City of Shreveport; BKLC, L.L.C.; Steven L. Schoonover; Module X Solutions, L.L.C., Appellants
Attorney:Ron Christopher Stamps, Ron Christopher Stamps, L.L.C., Shreveport, LA, for Appellant City of Shreveport Curtis Ray Shelton, Ayres, Shelton, Williams, Benson & Paine, L.L.C., Shreveport, LA, for Appellants BKLC, L.L.C., Steven L. Schoonover, Module X Solutions, L.L.C. Robert William Johnson, Will...
Judge Panel:Before STEWART, Chief Judge, and JONES and OWEN, Circuit Judges.
Case Date:August 06, 2019
Court:United States Courts of Appeals, Court of Appeals for the Fifth Circuit
 
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Page 333

783 Fed.Appx. 333 (5th Cir. 2019)

67 Bankr.Ct.Dec. 157

In the MATTER OF: M B INDUSTRIES, L.L.C., Debtor

City of Shreveport; BKLC, L.L.C.; Steven L. Schoonover; Module X Solutions, L.L.C., Appellants

v.

Hallwood Financial Limited; Hallwood Modular Buildings, L.L.C., Appellees

No. 18-31035

United States Court of Appeals, Fifth Circuit

August 6, 2019

UNPUBLISHED

Editorial Note:

Please Refer Federal Rule of Appellate Procedure Rule 32.1. See also U.S.Ct. of App. 5th Cir. Rules 28.7 and 47.5.

Page 334

Appeals from the United States District Court for the Western District of Louisiana, Nos. 5:15-CV-2533, 5:15-CV-2534, 5:15-CV-2536

Ron Christopher Stamps, Ron Christopher Stamps, L.L.C., Shreveport, LA, for Appellant City of Shreveport

Curtis Ray Shelton, Ayres, Shelton, Williams, Benson & Paine, L.L.C., Shreveport, LA, for Appellants BKLC, L.L.C., Steven L. Schoonover, Module X Solutions, L.L.C.

Robert William Johnson, William Michael Adams, Timothy Russell Wynn, Esq., Blanchard, Walker, O’Quin & Roberts, Shreveport, LA, for Appellees

Before STEWART, Chief Judge, and JONES and OWEN, Circuit Judges.

OPINION

PER CURIAM:[*]

Page 335

Who owns the forty-two cranes housed in a manufacturing facility in Shreveport, Louisiana? The bankruptcy court determined that Appellees own two of the cranes and hold valid and enforceable security interests in the other forty, so it granted summary judgment in favor of Appellees. The district court affirmed. For the reasons below, so do we.

I. Background

In 1962, the City of Shreveport ("the City") leased a manufacturing facility to J.B. Beaird Company ("Beaird").1 The 1962 Lease states that the City purchased the land and built the facility to keep Beaird from moving its manufacturing operations. It contains the following provisions, many of which are notably favorable to Beaird.

Article II, Acquisition of Site and Erection of Buildings and Related Facilities

• The City agreed to "erect, acquire, construct or install ... all necessary factory, office and other buildings, equipment, machinery and other personal property necessary for the business activities" of Beaird.

• Beaird could install "any machinery, equipment or fixtures" and "remove, add to, alter, adjust or repair any machinery, equipment or fixtures so installed by it" so long as Beaird didn’t interfere "with the progress of the construction of the Manufacturing Facility."

Article IV, Lease: Term and Rental

• The City leased Beaird "[t]he plant, building, or buildings, and other facilities, improvements and structures."

• Beaird owned all "equipment, fixtures, machinery and other personal property of whatever nature placed in, on or about the aforesaid premises and improvements," unless purchased by the City and affixed with an "appropriate tag or other device as being property of [the City]."

The City agreed to affix tags promptly.

Article IX: Repairs, Maintenance and Improvements and Equipment Installed by Company

• Any "additions, alterations or improvements, ... together with all machinery, equipment or tools, or facilities related thereto, ... placed or installed by" Beaird belonged to Beaird, regardless of "whether or not considered under the laws of the State of Louisiana to be an immovable." The "phrase ‘placed or installed by [Beaird]’ " included "work done on behalf of Beaird, regardless of who actually performs such work."

• Once the lease expired, Beaird could (1) abandon all such property to the City; (2) sell such property to the City; or (3) remove such property within a reasonable time, provided Beaird left the premises "in like good condition as when received,

Page 336 subject to ordinary wear and depreciation."

Article XV: Removal and Disposal of Property

• Beaird could "remove any machinery, equipment, tools or facilities related thereto, of any nature or kind (whether or not considered under the laws of the State of Louisiana to be an immovable) belonging to" Beaird.

At some point during the lease term, forty-two cranes were installed in the facility, but there is no record of who...

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