September 05, 2018

Sixth Circuit Panel Splits on the Attributes of a ‘Governmental Unit’

Sixth Circuit narrowly rules that a community health service is not a governmental unit and is thus eligible for chapter 11.

6th Circuit

August 03, 2018

Covenant Not to Compete Survives a Chapter 7 Discharge, Judge Nugent Says

Breaching a covenant not to compete does not give rise to a claim, because the primary remedy is equitable.

10th Circuit, Kansas

July 20, 2018

Profit Sharings in Leases Are Unenforceable Anti-Assignments, Third Circuit Says

Third Circuit upholds Delaware’s Judge Gross by nixing profit-sharing agreements under Section 365(f)(1).

July 02, 2018

Fifth Circuit Expounds on Overlooked Aspects of the Strong Arm Power

News flash: Louisiana law is different!

5th Circuit

June 22, 2018

Terminating a Lease for Default Doesn’t Invoke the § 362(b)(10) Stay Exception

Lower courts are split on whether terminating a nonresidential lease for default means there is no automatic stay.

6th Circuit, Michigan, Michigan Eastern District

June 18, 2018

Assuming a Lease Under Section 365(p) Doesn’t Also Require Reaffirmation, Some Say

Courts are split on the interpretation of BAPCPA’s treatment of automatically rejected leases in chapter 7.

11th Circuit, Florida, Florida Southern District

June 14, 2018

‘Cert’ Petition Asks Supreme Court to Overrule Lubrizol on Trademark Licenses

What did Congress mean in Sections 365(n) and 101(35A)? Is the right to use a trademark terminated when a trademark license is rejected?

Supreme Court

May 21, 2018

Connecticut Judge Takes Sides in a Circuit Split on Trademark License Rejection

A ‘cert’ petition is in the works to resolve the circuit split from Lubrizol regarding the rejection of trademark licenses.

2nd Circuit, Connecticut

May 01, 2018

Contract Wages for Executives Are Not Presumptively Allowable Postpetition, BAP Says

An executive with a rejected contract must prove value to have an allowable administrative claim, 9th Circuit BAP says.

9th Circuit

March 27, 2018

SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing

The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.

2nd Circuit, New York, New York Southern District