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§ 365(a)

Moran v. City of Central Falls

Ruling
Bankruptcy court properly authorized receiver for debtor city to reject contract with police officer.
Procedural posture

Appellant, a former police chief for appellee city, challenged a decision of the U.S. Bankruptcy Court for the District of Rhode Island, which authorized the court-appointed chapter 9 receiver for the city to reject an employment contract between the police chief and the city pursuant to 11 U.S.C.S. § 365(a).

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Commercial opinion summary, case decided on May 04, 2012 , LexisNexis #0612-010

In re Spooner

Ruling
Non-compete agreement was not an executory contract and could not be rejected.
Procedural posture

A chapter 13 debtor sought confirmation of his plan over the objection of the debtor's former employer. The employer objected to the plan to the extent that it provided for the rejecting of a non-compete agreement under 11 U.S.C.S. § 365(a).

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Commercial opinion summary, case decided on March 16, 2012 , LexisNexis #0412-078

In re Weathers

Ruling
Unscheduled employment agreement that contained a non-compete clause was deemed assumed and claim for postpetition breach was not discharged.
Procedural posture

A former employer filed a complaint asserting that a chapter 7 debtor assumed her obligations pursuant to an employment agreement and that her obligations under that agreement were not discharged. The employer sought summary judgment.

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Consumer opinion summary, case decided on October 26, 2011 , LexisNexis #1211-008

In re Prestige Motorcar Gallery Inc.

Ruling
Trustee's assumption and assignment of car dealership lease denied on objection of the lessor, debtor's sole shareholder.
Procedural posture

The trustee for a Chapter 11 debtor filed a motion for approval of the assumption and assignment of an unexpired lease pursuant to 11 U.S.C.S. § 365(a). The debtor's sole shareholder objected, suggesting that the trustee did not have the legal right to assume and assign the lease.

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Commercial opinion summary, case decided on September 13, 2011 , LexisNexis #1011-041

In re Auto Showcase of Laurel LLC

Ruling
Lease rejected but tenant had right to occupy premises due to debtor lessor's bad faith material breach.
Procedural posture

Plaintiff Chapter 11 debtor filed a motion pursuant to 11 U.S.C.S. § 365(a) to reject its lease with a tenant so that it could sell the leasehold property to a buyer who would then lease it and provide inventory financing to an affiliate of the debtor. The debtor contended that the tenant was in material breach of the lease and had forfeited any rights to remain in possession under § 365(h). The tenant opposed the motion.

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Commercial opinion summary, case decided on September 12, 2011 , LexisNexis #1011-042

In re GCP CT School Acquisition LLC

Ruling
Landlord entitled to prorated rent under rejected lease only up to date of rejection.
Procedural posture

A bankruptcy trustee rejected an unexpired lease of a bankruptcy debtor and paid the landlord under the lease an administrative expense claim for rent up to the date the debtor's property was removed from the leased premises. Upon remand from the Bankruptcy Appellate Panel for the First Circuit, a redetermination was required of the appropriate date of rejection for purposes of recalculating the landlord's claim.

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Commercial opinion summary, case decided on October 28, 2010 , LexisNexis #1210-008

Frontage Props. V. Chow (In re S&A Rest. Corp.)

Ruling
Addendum to rejected commercial lease could not be enforced.
Procedural posture

Creditor, the landlord of a chapter 7 debtor, sought a declaration pursuant to 28 U.S.C.S. § 2201 et seq. that an addendum to a lease of commercial property might be enforced despite a rejection of the lease by defendant Chapter 7 trustee. The trustee sought attorneys' fees and filed a motion to dismiss the complaint under Fed. R. Civ. P. 12(b)(6). Both parties filed summary judgment motions.

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Commercial opinion summary, case decided on September 10, 2010 , LexisNexis #1110-009

In re Grede Foundries Inc.

Ruling
Software maintenance agreement and other related agreements could be rejected, but only as a whole.
Procedural posture

Debtor moved to reject a software maintenance agreement with a computer company. The computer company opposed the motion, contending that the maintenance agreement was inseparable from other, related agreements that had to be accepted or rejected in toto. At the hearing, the debtor, as an alternative, sought to reject the contract in toto.

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Commercial opinion summary, case decided on August 20, 2010 , LexisNexis #1010-044

In re Philadelphia Newspapers LLC

Ruling
Debtor could reject asset purchase agreement.
Procedural posture

Before the court was debtors' motion for an order rejecting an asset purchase agreement (APA) and related agreements between certain of the debtors and the counterparty. The counterparty opposed the motion.

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Commercial opinion summary, case decided on January 13, 2010 , LexisNexis #0310-077

Valley Educ. Found. Inc. v. ElderCare Props. (In re ElderCare Props.)

Ruling
Lease was properly assumed where it had not been terminated following notice of default.
Procedural posture

Appellant lessor sought review of a judgment from the United States District Court for the Southern District of Texas, which held that the bankruptcy court correctly held that the lease had not been terminated following a notice of default. Appellee lessee also sought review of a portion of the judgment, which held that the bankruptcy court erred in finding that the lessee's failure to timely exercise its renewal option was excused.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on May 13, 2009 , LexisNexis #0609-077