Cct Communications, Inc. v. Zone Telecom, Inc.

Summary

The court held that the plaintiff's chapter 11 bankruptcy filing did not itself breach the purchase agreement and that the defendant's bankruptcy-triggered termination was ineffective under federal bankruptcy law. The ride-through doctrine did not apply because the bankruptcy case was dismissed before confirmation of a reorganization plan, and it could not retroactively validate the termination in any event. The court also held that the agreement was not a qualifying forward contract subject to the statutory safe harbor. The judgment was reversed and the case remanded for further proceedings.