Chapter 11 Filing Was Not Frivolous; No Sanctions Warranted, Federal Judge Says

Mealey's (February 7, 2019, 11:20 AM EST) -- WILMINGTON, Del. — A Delaware federal judge on Feb. 5 held that a bankruptcy court did not abuse its discretion in denying sanctions against debtors because their filings seeking to reject a franchise agreement were not patently unmeritorious or frivolous (In Re: Rent-A-Wreck Of America, Inc., et al., No. 18-801, D. Del., 2019 U.S. Dist. LEXIS 17857)....