Netflix, Inc. v. Relativity Media, LLC (In re Relativity Fashion, LLC)

Case Type:
Business
Case Status:
Affirmed
Citation:
16-3282-bk (2nd Circuit, Aug 22,2017) Not Published
Tag(s):
Ruling:
(1)Bankruptcy court had post-confirmation jurisdiction to adjudicate dispute over interpretation of contract assumed by debtor during bankruptcy-if Netflix had been permitted to stream films before release, it would have effectively destroyed revenue streams anticipated by plan and had great impact on reorganization.(2)Arbitration was not appropriate-court's finding that bankruptcy interests in protecting reorganization plan outweighed arbitration interests was not clearly erroneous.(3)Bankruptcy court's interpretation of contract as precluding pre-release streaming was not clearly erroneous.
Procedural context:
SUMMARY ORDER; NO PRECEDENTIAL EFFECT. Appeal from judgment of the district court, which affirmed an order of the bankruptcy court.
Facts:
Debtor Relativity Media, LLC, brought a motion in bankruptcy court to enforce its Chapter 11 plan of reorganization against Netflix to preclude Netflix from distributing two of the debtor's films through its video-streaming service before those films were released in theaters, and Netflix moved to compel arbitration.
Judge(s):
Reena Raggi and Raymond J. Lohler, Jr., Circuit Judges, and Joan M. Azrack, District Judge for E.D.N.Y. sitting by designation

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