In A Landlord Bankruptcy Sale, What Happens To The Lease?

By Michael Cook (December 14, 2018, 3:08 PM EST) -- The U.S. Court of Appeals for the Third Circuit held on Nov. 30, 2018, that "Section 365(h) of the Bankruptcy Code and the doctrine of equitable recoupment entitled [a commercial tenant] to continue paying [reduced] rent … even after its landlord filed for bankruptcy and rejected the [l]ease," in In re Revel AC Inc.[1] Affirming the lower courts, the Third Circuit sensibly explained that "[n]othing in the agreements or court orders governing [a third party's] purchase of the [debtor's] casino in bankruptcy changes this result."[2]

Relevance

Few cases address a landlord debtor's bankruptcy and its effect upon tenants. This case deals...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!