Bally Total Fitness Corp. v. Contra Costa Retail Center

MEMORANDUM OF DECISION

Plaintiff Contra Costa Retail Center, LLC (“Landlord”) moves to remand the above-captioned adversary proceeding against Bally Total Fitness Corporation (“Bally”) to the Superior Court of Contra Costa County, State of California (the “State Court”). For the reasons stated below, the motion will be granted.

BACKGROUND

Bally filed a chapter 11 petition in the United States Bankruptcy Court for the Southern District of New York on July 31, 2007 (the “Bankruptcy Case”). An order confirming Bally’s reorganization plan (the “Plan”) was entered on September 17, 2007 (the “Confirmation Order”).

Prior to the bankruptcy filing, Bally operated a fitness facility located on real property in Contra Costa County (the “Real Property”) pursuant to a written lease (the “Lease”) with Landlord, the owner of the Real Property. In or about May 2007, Landlord asserted that Bally was in default of the Lease and gave Bally a twenty day notice to quit the Real Property. In June 2007, Landlord gave Bally a three day notice to quit.

Bally contended that it was not in default of the Lease and refused to vacate the Real Property. Instead, it filed a complaint in State Court against…