A Fable from the Seventh Circuit: Frank Easterbrook on Good Faith

33 Pages Posted: 3 Nov 2014

See all articles by Dennis Patterson

Dennis Patterson

Rutgers University School of Law, Camden; University of Surrey - School of Law

Date Written: November 3, 2014

Abstract

Selling shoes in Chicago just got tougher. Struck by an unexpected blow from a source not unfriendly to economic pursuits, the prognosis forrecovery can only be bleak. To make matters worse, the shoe business is not the only victim in this tale of woe: the law took a beating as well.

The occasion for this economic and jurisprudential bruising is Kham & Nate's Shoes No. 2, Inc. v. First Bank of Whiting. In this decision, the Seventh Circuit, under the pen of Judge Frank Easterbrook, vacated a district court's subordination of a lender's claims pursuant to a plan of reorganization. The district court's justification for subordinating the debt was a finding by the bankruptcy judge that the lender had behaved "inequitably" in refusing to grant further cash advances pursuant to a line-of-credit agreement between the parties.

Suggested Citation

Patterson, Dennis, A Fable from the Seventh Circuit: Frank Easterbrook on Good Faith (November 3, 2014). Iowa Law Review, Vol. 76, No. 503, 1991-1991, Available at SSRN: https://ssrn.com/abstract=2518294

Dennis Patterson (Contact Author)

Rutgers University School of Law, Camden ( email )

Camden, NJ 08102-1203
United States
856-225-6369 (Phone)
856-751-8752 (Fax)

University of Surrey - School of Law ( email )

United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
94
Abstract Views
819
Rank
499,092
PlumX Metrics