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In re Catapult Entertainment

United States Court of Appeals for the Ninth Circuit
165 F.3d 747 (9th Cir. 1998)


Catapult Entertainment, Inc. (Catapult) (plaintiff), an online gaming company, was formed in 1994. It entered into two nonexclusive license agreements with Stephen Perlman (defendant), which gave Catapult the right to exploit certain technologies, including patents and patent applications. In October 1996, Catapult filed a petition for reorganization under Chapter 11 of the Bankruptcy Code. The company continued to operate as a debtor-in-possession. Not long before filing its petition, Catapult agreed to merge with Mpath Interactive, Inc. (Mpath). The effect of the merger would be to make Catapult a wholly owned subsidiary of Mpath. As part of its reorganization plan, Catapult moved the bankruptcy court to approve its assumption of approximately 140 executory contracts and unexpired leases, including the contracts with Perlman. Perlman objected, but the court granted the motion and approved the plan. The district court affirmed the decision of the bankruptcy court. Perlman appealed.

Rule of Law


Holding and Reasoning (Fletcher, J.)

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