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 CircuitMarch 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, IdahoFebruary 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 DistrictFebruary 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 DistrictJanuary 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 DistrictDecember 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 CircuitDecember 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 CourtNovember 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 DistrictOctober 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 DistrictSeptember 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