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IN RE FLAGSTAFF REALTY ASSOCIATES

No. 94-5650.

60 F.3d 1031 (1995)

In re FLAGSTAFF REALTY ASSOCIATES t/a F.R.A. Limited Partnership, Debtor. MEGAFOODS STORES, INC., Appellant, v. FLAGSTAFF REALTY ASSOCIATES, t/a F.R.A. Limited Partnership; Maurice L. McAlister; J.E. Robert Company, Inc.; Kenneth D. Hinsvark.

United States Court of Appeals, Third Circuit.

Decided July 31, 1995.

Attorney(s) appearing for the Case

Peter W. Sorensen (argued), Robbins & Green, Phoenix, AZ, Joseph E. Sales, Norris, McLaughlin & Marcus, P.C., Somerville, NJ, for appellant.

Roger B. Kaplan (argued), Deborah Del Nobile Tanenbaum, Wilentz, Goldman & Spitzer, P.C., Woodbridge, NJ, for appellee Flagstaff Realty Associates.

Before: MANSMANN, GREENBERG, SAROKIN, Circuit Judges.

OPINION OF THE COURT

SAROKIN, Circuit Judge:

A landlord defaulted on its responsibility to make necessary repairs to the demised premises, and the commercial tenant, as provided in the lease, cured the default by making the repairs. The lease permitted the tenant to offset the cost of those improvements against future rents. The issue presented is whether the monies expended by the tenant before bankruptcy can be recouped

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