Durkin
Durkin v. Benedor Corp. (In re G.I. Industries, Inc.)
Opinion
Lead Opinion
Brunetti, J.
This appeal arises out of an executory contract between Conejo Enterprises, Inc., (“Conejo”) and Benedor Corporation (“Benedor”). Conejo’s trustee, Ronald L. Durkin (“the trustee”), filed a motion with the bankruptcy court to reject the contract. The bankruptcy court approved the rejection, finding that the contract was “burdensome and onerous to Conejo.” Based on the rejection, Benedor submitted a proof of claim to the bankruptcy court, arguing that the rejection of an executory contract creates a statutory breach of contract action under 11 U.S.C. § 365 (g) that is independent of the underlying contract’s validity. The bankruptcy court disagreed and found that the contract was invalid following a five-day trial on the merits. The district court affirmed the bankruptcy court’s judgment on appeal. We have jurisdiction under 28 U.S.C. § 158 (d), and we affirm.
I.
In May 1993, the parties entered into an agreement that required Conejo to deliver a specified amount of “greenwaste” to Benedor for disposal every day over a twenty-one year period. The entire agreement consisted of a one-page chart entitled “GI Proposal” (“agreement”) that specified only the amount of greenwaste that…