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payments under the employment agreement. Since the employee received his salary at the rate provided under a key employee retention program, there was no unjust enrichment and the debtor was not entitled to any further payment upon his termination from employment.
Similarly, where the debtor rejected key executives' employment agreements, but paid the executives their regular salary after the bankruptcy filing, the "golden parachute" provisions of the agreements were not enforceable as an expense of administration.
Rejection does not cut off administrative expense liability associated with a contract. After rejection, the landlord was entitled to reasonable rent for lack of use of the premises to the extent that the trustee continued store estate property in the premises before the property was sold to the landlord's new tenant. The bankruptcy court found that approximately 10% of the space was occupied by the personal property and accordingly granted the lessor an expense of administration at 10% of the contract rent for the period after the lease was rejected.
7.4 Claim Resolution.
Contracts increasingly provide dispute resolution mechanisms, such as arbitration. If a contract is rejected, does an arbitration provision control determination of the claim, or does the bankruptcy court decide? Bankruptcy courts have discretion to defer to arbitration of disputes under the Federal Arbitration Act. Bankruptcy courts have discretion not defer to arbitration where the dispute turns on the Bankruptcy Code and arbitration would conflict with the purposes of the Code. The cases are inconsistent. In a case arising out of rejection of a natural gas contract, the non-debtor filed a proof of claim for $1,015,651,565.31 and sought arbitration of the debtor's
objection. Deferring to arbitration for claims with an arbitration clause, while leaving the claims
