Connecticut Railway & Lighting Co. v. Palmer

This case poses the question of the correct measure of damages allowable to a lessor creditor of a railroad debtor for the rejection of a lease under the reorganization provisions of § 77 of the Bankruptcy Act. The determination depends upon the meaning of the definitive clause “to the extent of the actual damage or injury determined in accordance with principles obtaining in equity proceedings.” Certiorari was granted, under § 240a of the Judicial Code, because the case involves an important question of federal law which should be settled by this Court.

On December 19, 1906, the Connecticut…