In re 2408 W. Kennedy, LLC, 512 B.R. 708
(Bankr. M.D. Fla. 2014) –
A commercial landlord sought relief from the automatic stay so
that it could complete prepetition eviction proceedings against the
debtor. The debtor objected, arguing that it had a right to assume
the lease. The case turned on whether the landlord effectively
terminated the lease prepetition.
The debtor operated a nightclub at a location that it leased
from the landlord. The landlord sent the debtor a default notice
for failure to make lease payments and on the basis that
the debtor defaulted on a promissory note that constituted a
default under the lease through a cross-default provision.
Based on the cross-default, the landlord contended that the
lease was "no longer in effect" and the debtor was
"occupying the premises as a Tenant at Will." (There is
an inference that the landlord relied on the cross-default because
under state law the tenant would have had a right to cure the lease
payment