Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
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.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.