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ABI Journal

April 17, 2023

Second Circuit Holds: The Party to a Contract Alone May Assert a ‘Cure Claim’

Someone who is not a party to the contract being assumed can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.

2nd Circuit

March 16, 2023

Limited Partnership Agreement Is an Estate Asset, Not an Executory Contract

Because a limited partner’s obligations were only ‘options,’ the partnership agreement was not an executory contract, Chief Judge Meier says.

9th Circuit, Idaho

February 13, 2023

Preliminary Injunction Didn’t Render a Contract Nonexecutory

A preliminary injunction in state court didn’t invoke comity or Rooker-Feldman to bar the bankruptcy court from rejecting an executory contract.

2nd Circuit, New York, New York Southern District

February 08, 2023

For the Cap on Lease Rejection Claims, Judge in the SDNY Adopts the ‘Time Approach’

Bankruptcy Judge Michael Wiles differed with his colleagues who in previous years had employed the ‘time approach’ in calculating a landlord’s rejection damages under Section 502(b)(6).

2nd Circuit, New York, New York Southern District

January 05, 2023

Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed

A deferred settlement agreement, like a workout agreement, can’t be assumed under Section 365.

9th Circuit, California, California Eastern District

December 21, 2022

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

3rd Circuit

December 07, 2022

Supreme Court Hears Argument on Section 363(m): Is It Jurisdictional or Not?

The justices seem inclined to hold that Section 363(m) is not jurisdictional, if they first decide that the appeal is not moot.

Supreme Court

November 02, 2022

A Security Deposit Is an Unsecured Loan, Unless State Law or the Lease Says Otherwise

If a tenant’s security deposit was swept by the landlord’s secured creditor but was not held in trust, the tenant has no recourse other than to file an unsecured claim.

2nd Circuit, New York, New York Southern District

October 05, 2022

When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status

Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.

2nd Circuit, New York, New York Southern District

September 28, 2022

A Cured Breach Still Invokes Section 365(b)(1)’s Landlord Protections, Circuit Says

Adequate assurance of future performance may not be required if the debtor has already cured the breach of lease, the Ninth Circuit says.

9th Circuit