In re Johnson (17-40105)

The Movant sought relief from the automatic stay.  The issue before the Court was whether the agreement between the Debtor and the Movant was a lease or a security interest.  The Movant argued Tennessee law governed the agreement by the operation of a choice-of-law provision in the contract.  Tennessee law explicitly provides that a rental-purchase agreement is not a security interest.  The Court agreed, finding the choice-of-law provision was enforceable.

Wednesday, June 13, 2018