In a recent decision, Bankruptcy Judge Christopher S. Sontchi addressed the question of whether a Chapter 11 debtor, the tenant under a commercial lease, could exercise an option to renew the lease during the bankruptcy proceedings, even though the debtor was in default under the lease and the lease specified that it could not be renewed if defaults existed at the time the option was exercised.
In a case of first impression at the circuit level, the United States Court of Appeals for the Ninth Circuit held that section 1129(a)(10) of the Bankruptcy Code — which requires a favorable vote of at least one impaired class of creditors in order to confirm a Chapter 11 plan — applies on a “per-plan” basis, rather than a “per-debtor” basis.
Rule 12(b)(6) Motion Denied in Infringement Dispute over Anastasia Musical, Due to “Lengthy Historical Record” Involving Central Character
Tenth Circuit Lowers Investment Advisor's Disgorgement from $35 to $5 Million
Guarantor May Not Interpose Wrongful Eviction Defense
Landlord Bound by Renewal Lease Signed After Judgment of Possession
Notice of Nonrewnal Sufficient to Withstand Jurisdictional Challenge
Incarcerated Son Not Entitled to Succession Rights
Occupant Did Not Establish Succession Rights
Court Dismisses Tortious Interference Claim By Holder of First Refusal Right
Triable Issue of Fact About Association Liability for Flooding
Unit Owner's Representations Cannot Be Used to Contradict Express Terms of Proprietary Lease
Federal Circuit Affirms Dismissal of Declaratory-Judgment Action Based Under Rule Against Piecemeal Adjudication
Federal Circuit Affirms Non-Infringement Finding Despite Defendant's Discovery Violation
Ultimately, Village at Lakeridge is noteworthy for what the Supreme Court did not decide. In granting certiorari, the Supreme Court declined to address whether the lower courts' various “non-statutory insider” tests should be refined. As concurrences from Justices Sotomayor and Kennedy emphasized, though, that issue is ripe for increased scrutiny.
Is This The End of the 'Yellowstone' Doctrine?
Recently, New York's Appellate Division, Second Department, acknowledged that commercial landlords may employ a strategy that prevents tenants from exercising Yellowstone rights, which enjoin the landlord from terminating the lease or commencing a summary proceeding.
