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Karen-Richard Beauty Salon v. Fontainebleau Hotel Corp.

United States District Court for the Southern District of Florida

36 B.R. 896 (1983)

Facts

From 1955 to 1980, Karen-Richard Beauty Salon, Inc. (salon) (plaintiff) operated a beauty salon in the Fontainebleau Hotel. In 1977, the hotel’s original owner, Fontainebleau Hotel Corp. (Fontainebleau) (defendant), sold the hotel to Hotelerama. In 1982, the salon filed a bankruptcy-court claim against Fontainebleau for a refund of the salon’s 1955 security deposit. Fontainebleau objected to the claim on the grounds that when Hotelerama bought the hotel, Hotelerama assumed all of its assets and liabilities. Therefore, Fontainebleau argued that the salon’s only remedy was against Hotelerama as assignee. The bankruptcy court sustained Fontainebleau’s objection, and the salon appealed to the federal district court.

Rule of Law

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Issue

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Holding and Reasoning (Spellman, J.)

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A "yes" or "no" answer to the question framed in the issue section;
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The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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