In re Trak Auto Corp.

367 F.3d 237 (2004)

Study Aids
Case Briefs Overview
Casebooks
Case Briefs
I
From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

In re Trak Auto Corp.

United States Court of Appeals for the Fourth Circuit
367 F.3d 237 (2004)

Facts

In 2001, Trak Auto Corporation (Trak Auto), an automobile parts and accessories retailer, filed for chapter 11 bankruptcy. As part of its reorganization, Trak Auto sought bids to buy out Trak Auto’s lease with West Town Center LLC (West Town) for space at a Chicago shopping center. The lease included a restriction on permitted uses that limited Trak Auto’s business to the retail sale of automobile parts, accessories, and related items. A & E Stores, Inc. (A & E), the highest bidder, intended to operate a discount-clothing store in the space, in violation of the permitted uses provision of the lease. Trak Auto asked the bankruptcy court to authorize the lease assignment to A & E. West Town objected, claiming that the assignment would breach the lease’s permitted uses. The court authorized the assignment, ruling that the lease’s permitted use restrictions were anti-assignment provisions prohibited under § 365(f)(1) of the Bankruptcy Code. The district court affirmed the bankruptcy court, and West Town appealed.

Rule of Law

Issue

Holding and Reasoning (Michael, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 802,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 802,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 802,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Bankruptcy
Real Estate Transactions

Key Terms