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IN RE DAVID ORGELL, INC.

Bankruptcy No. LA 89-25928.

117 B.R. 574 (1990)

In re DAVID ORGELL, INC., Debtor.

United States Bankruptcy Court, C.D. California.

August 3, 1990.

Attorney(s) appearing for the Case

Richard M. Neiter, Clarrisse Young, Stutman, Treister & Glatt, Los Angeles, Cal., for debtor.

Leonard A. Goldman, Goldman, Gordon & Lipstone, Los Angeles, Cal., for the landlord.

MEMORANDUM OF DECISION

SAMUEL L. BUFFORD, Bankruptcy Judge.

I. INTRODUCTION

This contested proceeding raises the issue of whether a landlord may enforce a clause in a long-term commercial lease, that provides for an increase in the rent from the contract rate to a market rate upon assignment of the lease, at the time that the debtor assumes and assigns the lease pursuant to Bankruptcy Code § 365, 11 U.S.C.A. § 365 (West 1979 & Supp...

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