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Court Caps Landlord's Bankruptcy Claim Against Lease Guarantor
A big issue in real estate and retail bankruptcies, among others, involves the disposition of commercial real estate leases, given the potential magnitude of landlord damage claims under state law resulting from a tenant's default under a long-term lease. Given these claims could overwhelm other creditor claims in a tenant's bankruptcy case, the Bankruptcy Code includes a provision that limits a landlord's claim, which presents challenges for landlords as creditors in bankruptcy cases. In In re Cortlandt Liquidating, Case No. 23-cv-03262-MKV, the U.S. District Court for the Southern District of New York, sitting as an appellate court, reviewed a Bankruptcy Court decision that addressed a number of issues involving a commercial landlord's claims in bankruptcy.
Landlord Asserted a $44M Claim in the Debtor's Bankruptcy Case
The opinion began by noting the bankruptcy case involved "the iconic New York City institution, Century 21 Department Store, and its affiliates," located on the Upper West Side of Manhattan in New York City. According to the opinion, C21 1972 Broadway LLC (tenant) and Lincoln Triangle Commercial Holding Co. (landlord) entered into a lease agreement for nonresidential real property located at 1972 Broadway in New York (the lease). In lieu of a cash security deposit, an affiliated entity, Century 21 Department Stores LLC (debtor-guarantor), guaranteed the tenant's performance under the Lease. In addition, the tenant's obligations under the lease were secured by a letter of credit issued by JPMorgan Chase Bank, and funded by the debtor-guarantor.
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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.