United States Sixth Circuit

In a bankruptcy proceeding, an order disallowing appellant's claim for future-rent damages arising from bankrupt lessee's rejection of a lease for personal property is reversed and remanded where the proper calculation of damages was to calculate the benefit of the bargain as of the date of the filing petition, and from there, determine actual damages based on state law by reducing the benefit of the bargain calculation by the amount actually or reasonably mitigated. An order granting appellant administrative expenses in the form of post-petition rent payments is affirmed where there was no abuse of discretion in requiring appellee to pay expenses from the date of appellee's filing of the petition to the date of the rejection of the lease.

Appellate Information

• Decided 05/19/2008
• Published 05/19/2008

Judges

• Before:  NORRIS, BATCHELDER, and GIBBONS, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Darlene M. Nowak, Marcus & Shapira, LLP, Pittsburgh, Pennsylvania, for Appellants.  Michael A. Gallo, Nadler, Nadler & Burdman, Co., L.P.A., Youngstown, Ohio, for Appellee.   ON BRIEF:  Darlene M. Nowak, Marcus & Shapira, LLP, Pittsburgh, Pennsylvania, for Appellants.  Michael A. Gallo, Nadler, Nadler & Burdman, Co., L.P.A., Youngstown, Ohio, for Appellee.