Massachusetts Bankruptcy Judge Finds Noncompete Claims Not Dischargeable

Mealey's (July 29, 2016, 1:21 PM EDT) -- BOSTON — A Massachusetts federal bankruptcy judge on July 20 ruled that a company’s rights to enforce noncompetition and nonsolicitation provisions of a franchise agreement entered into with a debtor are not claims as defined in the U.S. Bankruptcy Code and therefore are not dischargeable (In re: Carl S. Hurvitz, No. 16-11844, D. Mass. Bkcy., Eastern Div.; 2016 Bankr. LEXIS 2657).

(Opinion available. Document #98-160809-016Z.)

U.S. Bankruptcy Judge Melvin S. Hoffman of the District of Massachusetts ruled in favor of Blue-Grace Franchise LLC, which sought to...
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