Tag Archives: bankruptcy

Client Alert for Commercial Landlords: “Control The Space” and Pre-Bankruptcy Contractual Termination of Lease

When the economy weakens, as with the unprecedented effects of the current COVID-19 pandemic, certain office and retail tenants will be unable to satisfy their lease obligations, vacate or file bankruptcy. Landlords should anticipate the consequences of these developments and some may choose to be proactive rather than reactive, and one way is to consider sending notices of default and ... Read More

SCOTUS Opinion: Trademark Rights Survive Contract Rejection In Bankruptcy

Under bankruptcy law, a debtor may reject any executory contract, being a contract where performance remains due on both sides. In Mission Product Holdings, Inc. v. Tempnology, LLC, Tempnology entered into an executory contract giving Mission a license to use its trademarks. Tempnology then filed for Chapter 11 bankruptcy, and asked the Bankruptcy Court to allow it to reject ... Read More

Forgiven Debt – Taxable to the Borrower?

Generally, if a borrower is required to pay a sum certain at a specific time, the obligation is considered “debt” under the Internal Revenue Code.  If the lender forgives a portion, it has “cancelled” the debt and the borrower must declare and take into income the dollar amount cancelled.  A lender may unilaterally decide that a debt is not collectable ... Read More

Mortgage Company’s Indemnification Claim Against Loan Officer Not Discharged In Bankruptcy

When Fidelity First Home Mortgage Company was found liable by a jury under the doctrine of respondeat superior when one of its loan officers engaged in a fraudulent foreclosure rescue scheme, it sued the loan officer seeking indemnification and contribution. The loan officer claimed that Fidelity’s claims were discharged ... Read More