IN RE NEW VALLEY CORP.

No. 98-6267.

181 F.3d 517 (1999)

In re NEW VALLEY CORPORATION, Debtor. New Valley Corporation, c/o Brooke Group Ltd., v. CORPORATE PROPERTY ASSOCIATES 2 AND 3, c/o W.P. Carey & Company, Inc. Corporate Property Associates 2 and 3, Appellants.

United States Court of Appeals, Third Circuit.

Filed July 6, 1999.


Attorney(s) appearing for the Case

W. Thomas McGough, Jr. (Argued), James M. Doerfler, Reed Smith Shaw & McClay, L.L.P., Pittsburgh, PA, for Appellants Corporate Property Associates 2 and 3.

David M. Friedman, Lorie R. Beers (Argued), Howard W. Schub, Kasowitz, Benson, Torres & Friedman LLP, New York, New York, for Appellee New Valley Corporation.

Before: McKEE, RENDELL and GARTH, Circuit Judges.


OPINION OF THE COURT

GARTH, Circuit Judge:

This appeal presents us with the question of whether the doctrine of unclean hands can be applied to deny relief to a landlord-creditor when the Bankruptcy Court has held the landlord-creditor's Proofs of Claim were not related to the events giving rise to the assertion of unclean hands.

In this case, the Bankruptcy Court held that the alleged "unclean hands" did not bar the claims for relief sought by the...

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