Restaurant Leasing Within a Shopping Center
June 28, 2007
While all retail leases pose an array of issues to the landlords and tenants involved, retail leases relating to restaurants pose certain other issues that must be addressed in order to avoid surprise costs, liabilities, and delays. This article addresses several of those issues that relate to restaurant leases in a shopping center setting (either in a food court or as an outparcel location), including trash removal, pest and rodent control, parking, and exclusive uses.
Anti-Suit Injunctions: Is the Best Defense a Strong Offense?
June 28, 2007
In a case of significance to the secondary loan and distressed claim market, a North Carolina state court has entered an 'anti- suit injunction' barring a group of secondary, secured debt holders (the 'Fund Defendants'), from commencing any actions against Wachovia Bank. The case, <i>Wachovia Bank, NA and Wachovia Capital Partners, LLC v. Harbinger Capital Partners, et al.</i>, Civ. Action No. 07-CVS-5097 is pending in the General Court of Justice, Superior Court Division (Mecklenburg, NC) (the 'State Court Anti-Suit Action'), but its parties and the underlying facts arise from the Chapter 11 case of <i>In re Le-Nature, Inc.</i> pending in U.S. Bankruptcy Court, Western District of Pennsylvania (the 'Bankruptcy Case').
Attorneys' Fees Preserved In Bankruptcy Cases
June 27, 2007
This article discusses the development of the <i>Fobian</i> rule and other courts' treatment of it. The article also summarizes the Supreme Court's reasoning in abrogating the rule in <i>Travelers Casualty & Surety Co. v. Pacific Gas & Electric Co. (In re Pacific Gas & Electric Co.)</i>, 549 U.S. ____, 127 S. Ct. 1199 (2007).
In the Marketplace
May 31, 2007
Highlights of the latest equipment leasing news from around the country.
Exemptions and Prohibitions in the New Franchise Rule
May 31, 2007
The New Franchise Rule deletes the four exclusions in the existing Rule for employer-employees and general partnerships, cooperative organizations, testing or certification services, and single trademark licenses, since a revised definition of 'franchise' in the Rule obviates the need for these exclusions. The New Rule retains the exemption for franchise sales under $500, fractional franchises, and leased departments, while adding an exemption for petroleum marketers governed by the Petroleum Marketing Practices Act, as well as for three categories of 'sophisticated investor.'
No Proration of Lessors' Payments in Bankruptcy
May 30, 2007
On March 15, 2007, the U.S. Court of Appeals for the Third Circuit (the 'Third Circuit') issued an important decision regarding the rights of equipment lessors who find themselves ensnarled in court proceedings as a result of a lessee's filing for bankruptcy protection. <i>In Re: Federal-Mogul Global Inc v. Computer Sales International</i> considered whether two lower courts properly modified an equipment lease under 11 U.S.C. '365(d)(5) of the Bankruptcy Code ' formerly codified at 11 U.S.C. '365(d)(10) ' by permitting proration of payment obligations as of the date of rejection of the leases. The Third Circuit reversed, holding that modification of the lease terms was improper.
Movers & Shakers
May 30, 2007
News about lawyers and law firms in the commercial leasing industry.
