In an opinion that’s good for lessors, the U.S. Court of Appeals for the Third Circuit has ruled that the lower courts were incorrect to hold that the approval of a lease-rejection request included the implicit right to prorate the last lease payment.

In In re Federal-Mogul Global Inc., 2007 WL 777061 (3rd Cir. March 15, 2007) (not precedental), the lessor, Computer Sales International, Inc., appealed a ruling by the bankruptcy court permitting proration of the last month’s payment as of the date of the rejection of the lease....

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