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IN RE SOMERSET REGIONAL WATER RESOURCES, LLC

No. 19-1874.

949 F.3d 837 (2020)

IN RE: SOMERSET REGIONAL WATER RESOURCES, LLC. Larry L. Mostoller; Connie J. Mostoller, Appellants.

United States Court of Appeals, Third Circuit.

Opinion Filed: February 11, 2020.

Attorney(s) appearing for the Case

Aurelius P. Robleto , Robleto Law, Three Gateway Center, 401 Liberty Avenue, Suite 1306, Pittsburgh, PA 15222, Counsel for Appellants.

Courtney S. Schorr , McGuireWoods, 260 Forbes Avenue, Suite 1800, Pittsburgh, PA 15222, Counsel for Appellee.

Before: AMBRO, KRAUSE, and BIBAS, Circuit Judges.

OPINION OF THE COURT

When a lender insists on collateral, it expects the collateral to be worth something. Larry Mostoller's company was in bankruptcy and about to fold. Its largest creditor was willing to lend another $1 million to keep it afloat, but only if Mr. Mostoller pledged a forthcoming personal tax refund...

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