In Re the Select-A-Seat Corporation, an Arizona Corporation, Debtors. Fenix Cattle Company v. Warren M. Silver, Trustee

Fénix Cattle Company (Fénix) appeals the district court’s judgment affirming a bankruptcy judge’s order which permitted the trustee of the bankrupt, The Select-A-Seat Corporation, to reject an executory contract between Fénix and Select-A-Seat. We find that the bankruptcy court properly acted within its summary jurisdiction in sustaining the trustee’s action and affirm.

Select-A-Seat engaged in the development and marketing of computer software packages which facilitated remote outlet sales of tickets for athletic and entertainment events. On November 10, 1976, Select-A-Seat, through Lee R. Delay, its president, entered into a “Worldwide Licensing Agreement” with Fénix, a company Mr. Delay also controlled. Under this agreement, Fénix received exclusive rights to use and license Select-A-Seat’s software packages in all but five areas of the world which had been previously allocated to Select-A-Seat subsidiaries and others. As part of the agreement, Select-A-Seat also agreed not to provide the software to other parties for an initial period of ten years, and for five optional extensions of five years each. The agreement also provided warranties of title and of continued fitness of…