A U.S. district court recently held that a bankruptcy court abused its discretion in denying a franchisor's motion for relief from the U.S. Bankruptcy Code's automatic stay when the franchisee's bankruptcy petition was filed after the franchisor had previously filed litigation against the franchisee to enforce a covenant not to compete.
Bankruptcy Filing May Not Prevent Enforcement of Non-Compete Against Franchisee
A U.S. district court recently held that a bankruptcy court abused its discretion in denying a franchisor's motion for relief from the U.S. Bankruptcy Code's automatic stay when the franchisee's bankruptcy petition was filed after the franchisor had previously filed litigation against the franchisee to enforce a covenant not to compete.
By
Joseph M. Witalec And J. Todd KennardThis premium content is locked for LawJournalNewsletters subscribers only
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