In re Ortiz
United States District Court for the Central District of California
400 B.R. 755 (2009)
Professional boxer Victor Ortiz (Ortiz) signed a five-year exclusivity agreement with promoter Top Rank (Top Rank). Before the agreement expired, Ortiz filed for chapter 7 bankruptcy, and the trustee rejected the agreement under § 365 of the Bankruptcy Code. Ortiz then sought an injunction against Top Rank, alleging Top Rank was still trying to enforce the agreement's exclusivity provisions even after rejection. The bankruptcy court ruled for Ortiz, holding rejection extinguished all his obligations and left Top Rank with only a claim for monetary damages; Top Rank appealed, arguing its right to seek injunctive relief survived rejection.
Whether a nondebtor counterparty is entitled to equitable relief on a contract rejected under § 365 of the Bankruptcy Code if state law provides that monetary damages are not an adequate alternative to equitable relief.