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IN RE BALTIMORE MARINE INDUSTRIES

Nos. 06-1206, 06-1207.

476 F.3d 238 (2007)

In re BALTIMORE MARINE INDUSTRIES, Incorporated, Debtor. Alan M. Grochal, Appellant, and Maersk Line, Limited; Military Sealift Command, Plaintiffs, v. Ocean Technical Services Corporation; McAllister Towing of Baltimore, Incorporated, Defendants-Appellees. In re Baltimore Marine Industries, Incorporated, Debtor. Alan M. Grochal, Liquidating Agent, Appellant, v. Ocean Technical Services Corporation; McAllister Towing of Baltimore, Incorporated, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided: February 9, 2007.

Attorney(s) appearing for the Case

ARGUED: Alan M. Grochal, Tydings & Rosenberg, Baltimore, Maryland, for Appellant. Robert K. Gross, Eaton & Van Winkle, New York, New York, for Appellees. ON BRIEF: Alan Van Praag, Eaton & Van Winkle, New York, New York, James W. Bartlett, III, Alexander M. Giles, Semmes, Bowen & Semmes, P.C., Baltimore, Maryland, for Appellee Ocean Technical Services Corporation; J. Stephen Simms, Simms Showers, L.L.P., Baltimore, Maryland, for Appellee McAllister Towing of Baltimore, Incorporated.

Before MOTZ and TRAXLER, Circuit Judges, and David A. FABER, Chief United States District Judge for the Southern District of West Virginia, sitting by designation.

Vacated and remanded by published opinion. Judge MOTZ wrote the opinion, in which Judge TRAXLER and Judge FABER joined.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge

This appeal from a bankruptcy court order raises the question whether unpaid subcontractors have an absolute right to interpleaded funds owed to a government contractor, when the contractor has petitioned for bankruptcy. The courts below awarded the funds directly to the subcontractors and...

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