§ 502(b)(6)

In re Koenigsberg

Debtor filed a petition under Chapter 7 of the Bankruptcy Code, and an LLC filed a claim against the debtor's bankruptcy estate. The court allowed the LLC's claim in part in the amount of $230,260, and the LLC filed a motion to modify the court's award which sought allowance of prepetition interest in the amount of $29,459.
Ruling: 
Prepetition interest on judgment based on guaranty of lease obligation allowed but subject to statutory cap.
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Consumer case opionion summary, case decided on June 30,2011, LexisNexis #0811-045

In re Dronenbarger

Debtors filed a petition under Chapter 11 of the Bankruptcy Code, and claimants, an individual and a corporation, filed claims against the debtors' bankruptcy estate. The debtors filed an objection to both claims.
Ruling: 
Damages awarded for debtor's failure to repair leased property were not subject to lease termination cap.
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Consumer case opionion summary, case decided on January 31,2011, LexisNexis #0311-044

In re Premier Entmt Biloxi LLC

Debtor corporations filed petitions under chapter 11 and a lessor filed a proof of claim for the principal sum of $ 136,429. The debtors filed an objection to the lessor's claim, contending that the claim was subject to the statutory cap contained in 11 U.S.C.S. § 502(b)(6).
Ruling: 
Claim for "liquidated damages" for debtor's breach of lease after hurricane Katrina was subject to cap.
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Commercial case opionion summary, case decided on April 29,2009, LexisNexis #0709-049

In re Malese 18 Corp.

Movant, a creditor of Kmart stores, sought an order finding that a settlement agreement it previously entered into with Kmart of a claim for lease rejection damages that was previously approved by the court, was reasonable, and therefore that the refusal of the instant debtor, the remainderman on the Kmart leases to consent to the settlement was unreasonable. The instant debtor asserted that Kmart had much greater liability under its leases.
Ruling: 
Objection by remainderman to reasonable settlement of claim for lease rejection damages overruled.
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Commercial case opionion summary, case decided on April 16,2009, LexisNexis #0609-135

In re Brown

The debtors filed for chapter 13 bankruptcy relief. Two creditors filed a proof of claim based on the breach of a commercial lease. The debtors objected to the claim, alleging that the refitting costs necessary to re-let the property were not allowable pursuant to 11 U.S.C.S. § 502(b)(6). The bankruptcy court held an evidentiary hearing.
Ruling: 
Claim for refitting costs of commercial premises limited by statutory cap on lease damages.
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Consumer case opionion summary, case decided on October 23,2008, LexisNexis #1108-116

In re Timber Lodge Steakhouse Inc.

The debtor filed an objection to a claim filed by creditor for an amount resulting from the debtor's rejection of a lease of Wisconsin real estate where the debtor had operated one of its restaurants.
Ruling: 
Lessor's sale of premises after debtor's rejection of lease defeated any claim for future damages.
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Commercial case opionion summary, case decided on October 29,2007, LexisNexis #1107-112

In re FLYi Inc.

A distribution trust for chapter 11 debtors objected to the claim filed by a former landlord for lease rejection damages pursuant to 11 U.S.C. § 502(b)(6).
Ruling: 
Sale of premises by landlord terminated any claim for unpaid rent or rejection damages against debtor.
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Commercial case opionion summary, case decided on October 17,2007, LexisNexis #1107-043

Flanigan v. Samalex Trust (In re Flanigan)

Chapter 11 debtors filed a motion for summary judgment with respect to their objection to the proof of claim filed by a claimant. The debtor alleged that the claim was subject to a limitation for rent claims imposed by 11 U.S.C. § 502(b)(6).
Ruling: 
Claim based on debtor's guaranty of a lease was subject to rent claims limitation.
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In re Connectix Corp.

Creditor, the former commercial landlord of the debtor, filed a claim in the amount of $2,335,283.99 based on the debtor's future lease obligations. The chapter 7 trustee, the debtor, and its major shareholders, objected to the amount of claim, and asserted that, under the correct application of 11 U.S.C. § 502(b)(6), the landlord's recovery from the bankruptcy estate to $446,246.99.
Ruling: 
Landlord's capped claim for unpaid commercial rent allowed but less draws on letter of credit.
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1500 Mineral Springs Assocs. LP v. Gencarelli

Appellant creditors sought review of three orders issued by a U.S. Bankruptcy Court, which: (1) denied their motion to dismiss appellee debtor's individual chapter 11 petition for lack of good faith; (2) limited the creditors'claims against a corporate debtor for past and future rent to the amount provided by 11 U.S.C. § 502(b)(6); and (3) authorized an interim distribution to the individual debtor. The issues were consolidated for review.
Ruling: 
Case remanded for review of debtor's level of financial distress and reconsideration of cap on creditors'claims.
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