Law Commons^™

Calling All Supreme Court Justices! It Might Be Time To Settle This "Rejection" Business Once And For All: A Look At Sunbeam Products V. Chicago American Manufacturing And The Resulting Circuit Split, Alexander N. Kreisman

Seventh Circuit Review

As effective and efficient bankruptcy proceedings have become increasingly important in recent years, so has the need to protect intellectual property licenses. The Bankruptcy Code allows the representative of a bankrupt estate, with the court's approval, to reject executory contracts. Although rejection has taken many forms over the years, its goal is to offer debtors and trustees with a means to maximize the value of the bankrupt estate's remaining assets. Rejection accomplishes this by treating contracts that contain unfulfilled obligations by both parties as having been breached by the representative of the bankrupt estate.

However, the implications of this breach …