Restaurant Co. v. United Leasing Corp.

CYNTHIA D. KINSER, Justice.

In this appeal, we decide what effect, if any, the assumption of an unexpired lease in a Chapter 11 bankruptcy plan had on the running of the statute of limitations with regard to obligations under surety agreements. Because assuming an unexpired lease in bankruptcy did not create a new obligation between the parties to the original lease, we find that the statute of limitations as to the sureties' obligations began to run from the time of the principal obligor's initial default and did not commence anew when the Chapter 11 bankruptcy plan was confirmed. Thus, we…