Court Opinion

ID: 9458133
Source: CourtListenerOpinion
Date Created: 2023-08-04 20:43:54.682316+00
Date Added: 2024-06-11T17:35:39.029373
License: Public Domain

ORDER DENYING PETITION FOR REHEARING
By petition for rehearing, appellants Weaver, Landlords, assert that this court denied their claim for forfeiture of the lease because by accepting rents accruing after Landlords’ notification of termination under Paragraph 12, Landlords had waived their option to terminate it. The decision is erroneous, Landlords continue, because the bankruptcy trustee had stipulated with them that such acceptance of rents would be without prejudice to their case.
*745The answer is that neither the Referee, nor the District Court, nor this court refused forfeiture of the lease because of such acceptance. The fundamental bases of decision throughout was that the Landlords’ insistence upon a forfeiture was highly unconscionable and inequitable in the circumstances — a demand for blood. The conclusion generally was that as a court of equity the bankruptcy court had the discretion and power to refuse enforcement of paragraph 12, and rightfully exercised this prerogative. See Fleetwood Motel Corp., 335 F.2d 857, 862 (3 Cir. 1964), cited in the opinion in the instant case. Furthermore, we declined forfeiture in the circumstances as defeating the reorganization aims of Chapter X.
The petition for rehearing is denied.