David G. Michael is an attorney at the Lipson Neilson law firm’s Bloomfield Hills, Michigan office. He practices law in many different areas including commercial litigation, real estate transactions, and commercial leasing. He also works with landlord-tenant and condominium law and litigation.
David is a member of the Oakland County Bar Association, where he is a contributor to Latches Magazine and he stands as the Real Estate Committee Vice-Chair. He is also a member of the State Bar of Michigan in the Information Technology Law and Real Property Law sections.
David is contributor to Development Magazine, a publication of the Commercial Real Estate Development Association (NAIOP).
In 2001, David was an AmeriCorps*VISTA Anti-Poverty Fellow in Washington, D.C. When he is able to, David likes to ski, sail, and keep German Shepherd dogs.
Commercial Leasing Victory in Chapter 11 Bankruptcy Case
In a large chapter 11 bankruptcy case in which the debtor was a franchisee that operated internationally-branded restaurants at locations leased from eight separate landlords, we represented one of the landlords.
The debtor was operated post-petition by the receiver that had been previously appointed to collect a large money judgment against the debtor. The debtor’s only assets were its value as a going concern and its eight leases. Most of the leases were priced over-market, so the debtor had no liquidation value.
In order to sell the debtor as a going concern, the receiver cleverly used bankruptcy law and the opacity of the bankruptcy process to force the landlords—most of which were owed huge amounts for unpaid pre-petition rent—to renegotiate their leases to below market prices. However, in the end, the receiver was unable to sell the debtor as a going concern and was forced to close all of the restaurants—except the one operated on the premises that the debtor leased from our client.
We were able to successfully oppose the receiver’s scheme and to sell the premises owned by our client to a third party at a profit. None of the debtor’s other landlords were paid anything on account of their claims for pre-petition rent—although the receiver and its attorneys collected huge fees.
Favorable Outcome & Attorney Fees Recovered in Real Estate Case
In a commercial leasing bankruptcy case involving a debtor franchisee,
we were able to counsel our landlord-client through the Chapter 11
process and successfully replace the debtor with a new tenant. We also
recovered all of our client’s attorney fees from the debtor in the
Member of the Michigan Land Title Association