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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.
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.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.