IN RE STANDOR JEWELERS WEST, INC.
129 B.R. 200 (1991)
NATURE OF THE CASE: South (D) sought review of a determination that 365(f), preempted a provision in a retail lease that might otherwise have been valid under state law.
FACTS: Standor (P), filed Chapter 11.P sought to assume and assign the lease to Sterling Inc. D objected to because of an alleged refusal to provide D with 'adequate assurances' that the lessee would comply with a provision in the Lease requiring the lessee to remit to the landlord 75% of the appreciation in value of the Lease as a condition to the landlord's consent to any assignment. The court held that, even if the provision of the Lease allocating 75% of the value of the leasehold to the landlord as a condition of the assignment was valid under state law, that provision constituted a restriction on transfer of the lease which was preempted by and invalid pursuant to 365(f). D had no entitlement to any part of the $350,000.00 allocated by Sterling. D claims that it is entitled to $262,500.00 of the $350,000.00 held in the constructive trust.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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