Opinion ID: 3006049
Heading Depth: 4
Heading Rank: 2

Heading: Granting such other relief as is just.

Text: Reply Br. 5–6 (emphasis omitted) (quoting Am. Compl. ¶¶ 125–30, IDEA Boardwalk, LLC v. Revel Entm’t Grp., LLC, No. 14-01756 (Bankr. D.N.J. Sept. 26, 2014), ECF No. 6). Moreover, even if IDEA had squarely put the validity of its lease at issue, nothing Revel said in response created an objective legal dispute. Revel’s only argument was that its agreement with IDEA doesn’t qualify as “a true lease” 30 because it “provides for ‘rent’ payments based entirely on a percentage of the revenue derived from [IDEA’s operations]” and contains “numerous [] examples of provisions atypical of true leases.” Mot. to Dismiss ¶ 31, IDEA Boardwalk, LLC v. Revel Entm’t Grp., LLC, No. 14-01756 (Bankr. D.N.J. Oct. 13, 2014), ECF No. 8. Yet Revel failed to cite a single authority suggesting that a percentage-lease clause disqualifies a purported lease from being one. To leave no doubt that a true lease exists, IDEA’s agreement with Revel bars any argument to the contrary. It provides that [n]othing contained in this Lease shall be deemed or construed as creating the relationship of . . . partnership or joint venture between the parties hereto, it being understood and agreed that neither the method of computing rent, payment of the Tenant Fees nor any other provision contained herein nor any acts of the parties hereto shall be deemed to create any relationship between the parties other than that of Landlord and Tenant. The provisions of this Lease relating to the Percentage Rent payable hereunder are included solely for the purpose of providing a method whereby adequate rent is to be measured and ascertained. Mot. to Dismiss Ex. A, at 56, IDEA Boardwalk, LLC v. Revel Entm’t Grp., LLC, No. 14-01756 (Bankr. D.N.J. Oct. 13, 2014) (Section 21.12 of the Lease Agreement), ECF No. 8. The only conclusion from this is that any dispute regarding the validity of IDEA’s lease was fanciful if not 31 disingenuous. 12 As such, we part ways with the District Court’s holding that IDEA’s declaratory judgment request “provides some objective basis, at a minimum,” of a “bona fide issue in dispute.” In re Revel, 525 B.R. at 29. Before we conclude, we would be remiss if we did not highlight the troubling consequences of Revel’s argument. If whenever a lessee attempts to invoke its rights under § 365(h) by asserting as a predicate that it holds a nonresidential lease, 12 Underscoring this is that, on June 24, 2015, the Bankruptcy Court, per another Judge, concluded that Revel’s agreement with IDEA constitutes a “true lease” under New Jersey law and that § 365(h) protects its right “to remain in possession for the balance of the terms set forth in the Agreement[], and any renewal or extension period.” In re Revel AC, Inc., 532 B.R. 216, 227, 229 (Bankr. D.N.J. 2015). As to whether the agreement was a true lease, the Court said the following: [Polo North] places before the Court ample case law supporting the contention that a court must not be swayed by “form over substance” when determining the existence of a true lease. While this maxim is accurate, at some point form becomes substance. We have reached that point. The express terms of the Agreement[], together with supporting affidavits, make it clear that [Revel] and [IDEA] had the unequivocal intention of entering into true lease agreements. Id. at 226. 32 every debtor would be well advised to file an answer denying that the lease exists. Revel’s only response is that, by filing a declaratory judgment action, IDEA is “affirmatively alleging, subject to Rule 11, that there is a dispute as to that issue,” as there needs to be “an actual case or controversy” in order to have a declaratory judgment action. Oral Arg. Tr. 70:10–17. That argument makes no sense. A declaratory judgment plaintiff does not fall afoul of Rule 11 by making an allegation in its complaint that it knows to be true. That rule comes into play only where a plaintiff files a complaint without basis in law or fact. Quite the opposite is what we have here.