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    Supreme Court Determines Trademark Licensee’s Rights Survive Rejection by Debtor in Bankruptcy
    2019-09-05

    A debtor has the right to assume or reject any executory contract or unexpired lease through its bankruptcy, pursuant to the Bankruptcy Code.  A trademark license is an executory contract that is subject to assumption or rejection if performance remains due from both parties to the contract.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Trademarks, FisherBroyles LLP, Debtor, Title 11 of the US Code, Supreme Court of the United States, Seventh Circuit
    Authors:
    H. Joseph Acosta
    Location:
    USA
    Firm:
    FisherBroyles LLP
    SCOTUS Determines Trademark Licensee’s Rights Survive Rejection by Debtor in Bankruptcy
    2019-09-06

    A debtor has the right to assume or reject any executory contract or unexpired lease through its bankruptcy, pursuant to the Bankruptcy Code. A trademark license is an executory contract that is subject to assumption or rejection if performance remains due from both parties to the contract. A debtor will reject a trademark license if it believes that there is no net benefit to the counterparty to the contract continuing to perform its obligations and thereby will repudiate any further performance of its obligations.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Trademarks, FisherBroyles LLP, Debtor, Title 11 of the US Code, Supreme Court of the United States
    Authors:
    H. Joseph Acosta
    Location:
    USA
    Firm:
    FisherBroyles LLP
    Bankruptcy Court Tells Debtors They Must Choose Between Bankruptcy Or Being Able To Buy Medical Marijuana
    2019-09-09

    We have written before about the virtual dead end faced by marijuana companies who try to seek protection in the bankruptcy courts. Almost uniformly, bankruptcy courts have shut their doors on marijuana companies, including their landlords and suppliers.

    Filed under:
    USA, Healthcare & Life Sciences, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Debtor, Supreme Court of the United States
    Authors:
    Mark A. Salzberg
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Bankruptcy Jurisdiction: The Time-of-Filing Rule Applies to “Related-To” Jurisdiction
    2019-09-10

    Consider these facts. A debtor in bankruptcy sued two parties for breach of contract. The debtor assigned its rights and interests in the cause of action to another entity. The defendants moved to dismiss the lawsuit, arguing that the court now lacked jurisdiction over the case. They asserted that the debtor’s assignment of the cause of action destroyed the bankruptcy court’s “related to” jurisdiction. Who wins?

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Patterson Belknap Webb & Tyler LLP, Debtor, Supreme Court of the United States
    Authors:
    Daniel A. Lowenthal
    Location:
    USA
    Firm:
    Patterson Belknap Webb & Tyler LLP
    Post-Taggart, Debtors May Face Higher Pleading Standard
    2019-08-28

    This article first appeared in Law360.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Nelson Mullins Riley & Scarborough LLP, Debtor, Title 11 of the US Code, Supreme Court of the United States
    Authors:
    Shane G. Ramsey , John T. Baxter
    Location:
    USA
    Firm:
    Nelson Mullins Riley & Scarborough LLP
    The U.S. Supreme Court Rules That Rejection of a Trademark License Agreement in Bankruptcy Does Not Strip the Licensee of Its Right to Use the Trademark
    2019-08-19

    In Mission Product Holdings, Inc. v. Tempnology, LLC, 139 S. Ct. 652, 2019 WL 2166392 (U.S. May 20, 2019), the U.S. Supreme Court ruled that the rejection in bankruptcy of a trademark license agreement, which constitutes a breach of the agreement under section 365(g) of the Bankruptcy Code, does not terminate the rights of the licensee that would survive the licensor’s breach under applicable non-bankruptcy law.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Trademarks, Jones Day, Debtor, US Congress, Title 11 of the US Code, Eighth Circuit, Supreme Court of the United States, Third Circuit
    Authors:
    Ben Rosenblum , Mark G. Douglas
    Location:
    USA
    Firm:
    Jones Day
    From the Top in Brief
    2019-08-19

    On June 3, 2019, the U.S. Supreme Court ruled in Taggart v. Lorenzen, 139 S. Ct. 1795 (2019), that a bankruptcy court may hold a creditor in civil contempt for attempting to collect on a debt that has been discharged in bankruptcy "if there is no fair ground of doubt as to whether the [discharge] order barred the creditor’s conduct." In so ruling, the Court vacated and remanded a ruling by the U.S.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jones Day, Title 11 of the US Code, Supreme Court of the United States, Ninth Circuit
    Authors:
    Bruce Bennett , Mark G. Douglas
    Location:
    USA
    Firm:
    Jones Day
    Supreme Court: Rejection of a Trademark License by a Bankrupt Licensor Doesn't Terminate the License
    2019-07-17

    What happens if you are a trademark licensee and your licensor files for bankruptcy protection?

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Trademarks, Ward and Smith, PA, Debtor, Title 11 of the US Code, Supreme Court of the United States
    Authors:
    Norman J. Leonard
    Location:
    USA
    Firm:
    Ward and Smith, PA
    Client Alert: Madoff: Insolvency Laws Without Borders
    2019-07-19

    On February 25, 2019, the U.S. Court of Appeals (2nd Circuit) ruled that the trustee in the Chapter 11 case for Madoff Investment Securities, LLC could use the U.S. Bankruptcy Code to recover payments made between foreign entities. Previously, the Bankruptcy Court for the S.D.N.Y. and the U.S. District Court for the S.D.N.Y ruled that the trustee could NOT sue the foreign entities based on principles of international comity and the presumption against extraterritoriality of U.S. Laws, including the U.S. Bankruptcy Code.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Shumaker Loop & Kendrick, Debtor, Supreme Court of the United States
    Authors:
    David H. Conaway
    Location:
    USA
    Firm:
    Shumaker Loop & Kendrick
    SCOTUS Adopts ‘Objectively Reasonable’ Standard for Violations of Bankruptcy Discharge Orders
    2019-07-22

    In determining the legal standard for holding a creditor in civil contempt for attempting to collect a debt in violation of a bankruptcy discharge order, the Supreme Court of the United States adopted an “objectively reasonable” standard, and held that a court may hold a creditor in civil contempt if there is “no fair ground of doubt” as to whether the order barred the creditor’s conduct.

    Accordingly, the Supreme Court reversed the Ninth Circuit’s ruling, which had applied a subjective standard for civil contempt.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Debtor, Google, Title 11 of the US Code, Supreme Court of the United States
    Location:
    USA
    Firm:
    Maurice Wutscher LLP

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