In re: FILENE'S BASEMENT, LLC, et al.,1 Reorganized Debtors., 2015 Bankr. LEXIS 1350

Summary

HOLDINGS: [1]-The text of 11 U.S.C.S. § 502(b)(6)(A) requires application of the 15 percent cap based on the "time" approach; [2]-The court found the reasoning of the Court of Appeals in El Toro persuasive and agreed with the more narrow interpretation of § 502(b)(6). The statute does not prevent a landlord from asserting a separate claim for damages that do not directly arise from termination of the lease; [3]-The Abandonment Claim was a claim that fell within the scope of § 502(b)(6), but was not part of the "rent reserved" under § 502(b)(6)(A) and, therefore, could not be included the calculation of the claim under § 502(b)(6); [4]-The Mechanic's Lien Claim existed independent of whether the Lease was terminated. Accordingly, the Mechanic's Lien Claim was not subject to the limitations of § 502(b)(6), and the Landlord could assert a separate claim for recovery of those costs.