News & Analysis as of

Breach of Contract Commercial Bankruptcy Debtors

Patton Sullivan Brodehl LLP

Bankruptcy Property Deal Devolves Into Mess of Contract and Fiduciary Duty Claims

The bankruptcy process is often straightforward: the debtor’s debts are discharged, creditors take a haircut of varying degrees, and life moves on.  But some bankruptcy proceedings give birth to complicated agreements that...more

DLA Piper

Fifth Circuit Rules that Serta Simmons Bedding, LLC’s 2020 Uptier Transaction Violated Pro Rata Distribution Covenant

DLA Piper on

In a landmark ruling, the US Court of Appeals for the Fifth Circuit ruled that a June 2020 refinancing transaction (the Uptier Transaction) entered by Serta Simmons Bedding, LLC (SSB, or the Debtor) and certain of its lenders...more

Akin Gump Strauss Hauer & Feld LLP

Serta - Fifth Circuit Decision

On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its long-awaited decision regarding the permissibility of the Serta Simmons Bedding (Serta) uptier liability management exercise (the 2020 Uptier)...more

Hendershot Cowart P.C.

Executory Contracts and Contract Rejection: What Non-Debtors Need to Know About Bankruptcy

Hendershot Cowart P.C. on

Bankruptcy debtors have special rights in contracts or leases where both parties have outstanding obligations, known in legal terms as “executory contracts” or “unexpired leases”. If you are doing business with a company that...more

Patterson Belknap Webb & Tyler LLP

New SDNY Decision on Administrative Priority for Executory Contracts

To encourage parties to transact with debtors in bankruptcy, the Bankruptcy Code in corporate bankruptcies provides highest priority to “administrative expenses,” which include “the actual, necessary costs and expenses of...more

Jones Day

Delaware Court Holds Rejection Eliminates Non-Debtor's Exclusive Right to Provide Services to the Debtor

Jones Day on

Nine Point Energy Holdings, Inc. and its affiliates (collectively, "Nine Point" or "Nine Point debtors") constituted an oil and gas production and exploration company that sought to reorganize in chapter 11 through a going...more

Tucker Arensberg, P.C.

Informal but Actual Notice of Bankruptcy: What Difference Does It Make?

On January 3, 2021, in In re Ditech Holding Corporation, Case No. 19-10412 (JLG), an unpublished opinion, Bankruptcy Judge James L. Garrity, Jr., discussed an important distinction for creditors of a non-individual chapter 11...more

Farella Braun + Martel LLP

What to Do When Commercial Leases End Up in Bankruptcy

The COVID-19 pandemic is forcing many businesses to close, leaving landlords in the lurch. The COVID-19 pandemic continues to shake up the nation’s economy. Long-standing companies such as JC Penney, J. Crew, Neiman...more

Farella Braun + Martel LLP

Three Steps Licensees Can Take to Protect Their IP Rights in Bankruptcy

During periods of widespread economic disruption such as the present, operating businesses must be able to identify and respond to threats to the financial health of their contracting counterparts in order to protect key...more

Quinn Emanuel

August 2019: Bankruptcy Update

Quinn Emanuel on

Mission Product Holdings, Inc. v. Tempnology, LLC, 139 S. Ct. 1652 (2019): The Supreme Court Protects Trademark Licensees, But Raises New Questions About The Effect Of Rejecting Executory Contracts - The Supreme Court has...more

Jones Day

The U.S. Supreme Court Rules That Rejection of a Trademark License Agreement in Bankruptcy Does Not Strip the Licensee of Its...

Jones Day on

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...more

Ward and Smith, P.A.

Supreme Court: Rejection of a Trademark License by a Bankrupt Licensor Doesn't Terminate the License

Ward and Smith, P.A. on

What happens if you are a trademark licensee and your licensor files for bankruptcy protection? Can the licensor unilaterally terminate your license and prohibit you from using the license – even if you're in the middle of...more

Harris Beach Murtha PLLC

Supreme Court Brings Protections to Licensees of Trademarks

The United States Supreme Court has rendered a decision that represents a victory for licensees of trademarks throughout the country when faced with a bankrupt licensor....more

Patterson Belknap Webb & Tyler LLP

Trademark Licenses . . . Again (Update No. 8): The Supreme Court Decides! (Part 2)

Our May 22 post reported on the Supreme Court’s May 20 decision in Mission Product Holdings, Inc. v. Tempnology, LLC,[1] an 8-1 decision holding that the rejection of a trademark license in which the debtor is the licensor...more

McDermott Will & Schulte

Supreme Court Addresses Effects of Trademark License Rejection in Bankruptcy

In an 8–1 decision, the Supreme Court of the United States reversed the US Court of Appeals for the First Circuit and held that rejection of a trademark license in bankruptcy constitutes a breach of the license agreement,...more

Mintz - Intellectual Property Viewpoints

U.S. Supreme Court Adopts Rule Protecting a Trademark Licensee’s Ability to Use a Trademark after a Bankrupt Licensor’s Rejection...

This past May, in a highly-anticipated decision, the Supreme Court held in Mission Product Holdings, Inc. v. Tempnology, LLC that a debtor’s rejection of an executory contract under Section 365 of the Bankruptcy Code has the...more

Foley & Lardner LLP

Preserving and Protecting Value Following the Recent Supreme Court Decision Shifting the Landscape on Intellectual Property...

Foley & Lardner LLP on

In May 2019, the U.S. Supreme Court decided the Mission Product Holdings, Inc. v. Tempnology, LLC case. The Mission Products Holdings decision provides a reminder to intellectual property license parties that periodic review...more

Latham & Watkins LLP

US Supreme Court Clarifies Treatment of Rejected Trademark Licenses and Other Executory Contracts in Bankruptcy

Latham & Watkins LLP on

The Supreme Court holds that a debtor’s rejection of an executory contract in bankruptcy constitutes a breach. Introduction - In Mission Product Holdings, Inc. v. Tempnology, LLC (Tempnology), the US Supreme Court...more

Eversheds Sutherland (US) LLP

When bankruptcy law and trademark licensing intersect - The Supreme Court’s decision in Mission Product Holdings Inc. v....

On May 20, 2019, the US Supreme Court clarified that when a trademark licensor rejects a trademark license agreement in a Chapter 11 bankruptcy proceeding, the rejection does not rescind the use rights of the licensee under...more

International Lawyers Network

Trademark License Rights Survive Rejection in Bankruptcy

Settling a circuit split, the U.S. Supreme Court, in an 8-1 decision, has concluded that a trademark licensee’s rights are not automatically terminated when a debtor in bankruptcy rejects the license agreement. The...more

Perkins Coie

Supreme Court Shields Trademark License From Licensor’s Rejection in Bankruptcy Court

Perkins Coie on

The U.S. Supreme Court’s recent decision in Mission Product Holdings, Inc. v. Tempnology, LLC, 139 S. Ct. 1652 (2019) that a trademark licensor’s rejection of a trademark license does not terminate the licensee’s right to use...more

Herbert Smith Freehills Kramer

Supreme Court Holds That Trademark Licensor’s Rejection Does Not Rescind or Terminate License

On May 20, 2019, in Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. ---, 139 S. Ct. 1652 (2019), the Supreme Court resolved a split among the circuits, holding that a licensor’s rejection of a trademark license in...more

Carlton Fields

Supreme Court: Trademark Owner in Bankruptcy Can’t Cancel Its Trademark Licenses

Carlton Fields on

What happens to the business of a trademark licensee when the licensor goes bankrupt has always been an uncertain gray area....more

Proskauer - New Media & Technology

On the Mark: Understanding the Supreme Court’s Latest Decision Regarding the Treatment of Trademark Licenses in Chapter 11

On May 20, 2019, in Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. ___ (2019), the Supreme Court resolved an area of ongoing concern for parties to trademark licenses. The court addressed a circuit split on...more

White & Case LLP

Supreme Court Clarifies Effects of Bankruptcy on Trademark Licenses

White & Case LLP on

On May 20, 2019, the Supreme Court held in Mission Products Holdings, Inc. v. Tempnology, LLC that a debtor-licensor's rejection of a trademark license agreement does not "deprive the licensee of its rights to use the...more

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