2006 Judge Kaplan - Opinions

Judge Michael B. Kaplan -- Opinions signed in 2006

In re S.A. Holding Co., LLC 05-17874 (MBK) 12/22/2006

"Debtor operated an adult entertainment club. After prolonged litigation, debtor and the city reached a settlement agreement which, after being amended, authorized debtor to continue to operate the club for two more years as a ""go-go club."" The agreement also provided for the city to designate the property for redevelopment and establish a redevelopment plan. After the passage of two years, the city filed a motion in the state court to enforce the agreement. Debtor challenged the redevelopment plan. Debtor filed for Chapter 11 relief and sought to reject the agreement, contending that the agreement remained executory due to the city's alleged failure to designate the property as an area in need of redevelopment and adopt an enhanced redevelopment plan permitting development of high density residential housing. In denying debtor's motion, the court held that there was no reference in the agreement to an obligation imposed upon the city to adopt an enhanced redevelopment plan permitting development of high density residential housing. The court held that the city had substantially performed its obligations under the agreement. "