Rushton v. State Bank of Southern Utah (In Re Gledhill)

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that a creditor is not entitled to legal fees under § 506(b) if the creditor’s lien arose not by agreement but by operation of law and is a nonconsensual lien
• stating that statutory hens are “fixed by operation of law without consent of debtor” (citing United States v. Ron Pair Enters., Inc., 489 U.S. 235, 240, 109 S.Ct. 1026, 103 L.Ed.2d 290 (1989))
• denying creditor's request for attorney fees under § 506(b) when the only basis for the claim was a judgment lien that arose by operation of law after the note and trust deed providing for fees was reduced to judgment following foreclosure
• former provision outlawing provision for payment of attorney fees in notes, mortgages, and other “evidence of indebtedness”
• “[T]he Bank has not directed us to any post-Ron Pair decision awarding fees and costs to an oversecured creditor holding a nonconsensual [lien] claim.”
• a creditor’s bankruptcy claim is measured as of the filing date of the petition and may include penalties, interest, fees and costs that accrued prior to such date

Source: CourtListener parenthetical corpus (CC0).