Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
File for Chapter 11, Get the First Month's Rent Free?
Two recent court opinions, In re Stone Barn Manhattan LLC, 398 B.R. 359 (Bankr. S.D.N.Y. 2008) and In re Goody's Family Clothing, Inc., 401 B.R. 656 (D. Del. 2009), challenge the growing consensus that 11 U.S.C. ' 365(d)(3) (the “Statute,” or “Section 365(d)(3)”) does not require the timely payment of stub rent. Stub rent is “the rent for the interim period between the day the order for relief was entered in the bankruptcy case and the end of that month.” Stone Barn, 398 B.R. at 360-361. In a commercial lease, prepayment of rent is generally due on the first of the month. A debtor usually files after the first of the month. Therefore, stub rent is present in almost every case that involves nonresidential real property leases.
“Courts have differed on whether an obligation to pay rent 'arises' on the day that rent is due (the 'billing-date approach'), or on each day the tenant occupies the leased premises (the 'proration approach') [requiring the timely payment of stub rent].” Goody's, 401 B.R. at 663. While circuit courts generally favor the billing date approach, bankruptcy courts generally favor the proration approach. As will be discussed, this split may well be a result of bankruptcy courts' familiarity with the real world context of the Statute.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
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.