City of Key West v. Key West Hand Print Fabrics, Inc. (In re Key West Hand Print Fabrics, Inc.)

JAMES LAWRENCE KING, Chief Judge.

The City of Key West, Florida (the City), the plaintiff below, appeals the bankruptcy court’s denial of its claim to terminate a lease between itself and debtor/defendant/appellee Key West Hand Print Fabrics, Inc. The City, as lessor, sought to terminate a lease of real property to Key West Hand Print Fabrics on the basis that the lease was void. The court agrees with the bankruptcy court that the lease should not be terminated.

I. FACTS AND PROCEEDINGS BELOW

The bankruptcy court found that the lease agreement provided that Key West Hand Print Fabrics was to pay…