Editor’s Note:Legal Corner contains case summaries and analysis of recent court decisions that impact retail leasing and lease administration. These summaries focus on the leasing issues covered in each case and do not include detailed discussions or analysis of the procedural and peripheral issues in the cases.
Is a Liquidated Damages Clause Enforceable?
The Privy Council's recent judgment in Weavering[1]upheld the decisions of the Cayman Islands Grand Court and Court of Appeal that payments made to redeemed investors immediately prior to the fund's liquidation were preference payments under section 145(1) of the Companies Law (2018 Revision) (Law), and must be repaid.
The last several years have been treacherous for the retail sector. Changing shopping patterns and shifting demographics have led some commentators to declare that the (retail) apocalypse is upon us.
RE Z III Trust [2019] JRC 069
The Royal Court of Jersey has determined that the preferred course to follow when winding up an insolvent trust is for the existing trustee to apply a formal winding up procedure under the Court's supervision. Key features of this procedure would be (i) a moratorium on legal claims; (ii) the trustee should advertise for claims on the trust assets; and (iii) the trustee should require creditors to prove their claims before distributing the assets.
The Z Trusts litigation
In this tumultuous retail climate, a string of recent conflicting court decisions remind retailers that the potential impact of a licensor bankruptcy on a trademark licensee’s rights may vary dramatically depending on the location of the licensor’s bankruptcy proceedings.
Although the legal community eagerly awaits the California Supreme Court’s decision on advance waivers in Sheppard, Mullin, Richter & Hampton v. J-M Mfg. (Cal. No. S232946), a recent decision in the Bankruptcy Court for the Southern District of New York in the case of In re: Relativity Media, LLC, has addressed similar issues and provides some guidance.
Toys “R” Us filed for bankruptcy in September 2017, with hopes that a strong holiday season would facilitate a successful reorganization.
Several recent decisions serve as a good reminder that it is not only the Probate and Family Court that addresses important T&E issues in Massachusetts.
If you believe the hype, it is only a matter of time before brick and mortar retail succumbs to its online competitors.
On March 2nd, after much media speculation, Sports Authority commenced a case under chapter 11 of the United States Bankruptcy Code. In its initial bankruptcy filings, the company’s CFO announced that it will close up to 200 of its 464 stores over the course of the bankruptcy case.