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IN RE HAYES

No. 09-14439 B.

431 B.R. 545 (2010)

In re Timothy M. HAYES d/b/a Hayes Motor Car, Debtor.

United States Bankruptcy Court, W.D. New York.

July 7, 2010.

Attorney(s) appearing for the Case

Amigone, Sanchez, Marttrey & Marshall LLP, Arthur G. Baumeister Jr., Esq., of counsel, Buffalo, NY, for Debtor.

Hiscock & Barclay, LLP, Mark R. McNamara, Esq., of counsel, Getman & Biryla, LLP, Seth L. Hibbert, Esq., Buffalo, NY, Thomas M. Rizzo, Esq., Kenmore, NY, for M & T Bank.

Damon & Morey LLP, Beth Ann Bivona, Esq., of counsel, Buffalo, NY, Special Counsel to Thomas Webb Jr. as Executor of the Estate of Alex G. Schmidt.

John Janusz, Esq., IRS-Office of Chief Counsel, Buffalo, NY, for the IRS.

DECISION & ORDER

BUCKI, Chief Judge.

The present dispute involves the interplay between the Bankruptcy Code and state law regarding the imposition of an attorney's lien on the proceeds of a settlement. The deciding issue is whether 11 U.S.C. § 362(a) creates an automatic stay that precludes a post-petition attachment of such an attorney's lien.

Under New York law, telegraph and telephone corporations may use the power of eminent domain...

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