Articles Posted in Bankruptcy

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The Supreme Court reversed the judgment of the trial court in favor of Defendant on Plaintiff’s complaint and Defendant’s counterclaim for damages and declaratory judgment. This case stemmed from a purchase agreement entered into by the parties in which Plaintiff was to provide various equipment and services to Defendant for a telecommunications switch room. The Supreme Court held (1) the trial court incorrectly concluded that Plaintiff breached the purchase agreement by filing a petition for bankruptcy protection under chapter 11 of the United States Bankruptcy Code; and (2) the trial court erred in determining that Defendant was within its rights to terminate the purchase agreement upon Plaintiff’s initiation of bankruptcy proceedings. View "CCT Communications, Inc. v. Zone Telecom, Inc." on Justia Law

Posted in: Bankruptcy, Contracts

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After the bankruptcy court granted Plaintiff a discharge of her debts, Plaintiff filed this action against the named defendants, alleging misuse of funds of a trust established by her mother. Plaintiff subsequently filed a motion to substitute the bankruptcy trustee as the proper plaintiff. The trial court denied the motion, concluding that Plaintiff failed to show that she had brought the action in her own name due to a mistake. The court then dismissed the action for lack of subject matter jurisdiction. While Plaintiff’s appeal was pending, the bankruptcy court granted the bankruptcy trustee’s motion to abandon the underlying cause of action. The Appellate Court affirmed. The Supreme Court dismissed Plaintiff’s appeal as moot, holding that because the bankruptcy trustee abandoned the underlying action and Plaintiff no longer was seeking to substitute the trustee as party plaintiff, resolution of this claim would afford Plaintiff no practical relief. View "Gladstein v. Goldfield" on Justia Law

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Getty Properties Corp. leased certain properties to Getty Petroleum Marketing, Inc. by way of a master lease. Getty Marketing sublet the properties to Green Valley Oil, LLC. Thereafter, Green Valley entered into an individual sub-sublease with each Defendant, the owners of retail gasoline stations. Getty Properties subsequently terminated the master lease. Getty Marketing then filed for bankruptcy. The bankruptcy court rejected the master lease and ordered that Getty Marketing relinquish possession of the properties to Getty Properties. Getty Properties and NECG Holdings Corp. served Defendants with notices to quit, but Defendants refused to vacate the properties. Plaintiffs subsequently commenced summary process actions against Defendants. The trial court rendered judgment of immediate possession for Plaintiffs. The Supreme Court affirmed, holding that the trial court did not err in (1) determining that Plaintiffs’ notices to quit were valid; (2) admitting into evidence the lease between Getty Properties and Getty Marketing, as well as the sublease between Getty Marketing and Green Valley; (3) interpreting the various pleadings in Getty Marketing’s bankruptcy case as terminating the lease and the sublease; (4) finding that Plaintiffs proved a prima facie case for summary process; and (5) failing to dismiss the summary process action as premature. View "Getty Props. Corp. v. ATKR, LLC" on Justia Law