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Lessee Remains Liable to Lessor Following Failed Mitigation
In Giant Eagle, Inc. v. Phar-Mor, Inc., 2008 WL 2078787 (6th Cir. 2008) the United States Court of Appeals for the Sixth Circuit held that the lower courts erred in their determination that once a lessor mitigates its damages by entering into a substitute lease, the lessor cannot claim damages from the original lessee for the period covered by the new lease if the substitute lessee subsequently defaults.
In this case, the original lessee and lessor were parties to a long-term lease for warehouse equipment. One year after the lessee's Chapter 11 filing, the lessee rejected the lease under ' 365(a) of the bankruptcy code. The lessor attempted to mitigate its damages by entering into a new lease, but that lessee also filed for bankruptcy. The lessor then sought damages from the original lessee. The original lessee objected, arguing that it was excused from liability as of the date the lessor entered into the subsequent lease, because that lease could have fully mitigated its damages. The Bankruptcy Court agreed with the original lessee, as did the District Court. The Circuit Court reversed and instead found for the lessor.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.