Landlord Claim

The claim against the bankruptcy estate held by the lessor of real property. The claim may have a number of components:

First, a landlord may have under Section 502(b)(6)(B) a general unsecured claim for any prepetition rent and other charges due under the lease as of the bankruptcy filing. This claim for prepetition unpaid rent, unlike a claim for future rent, is not subject to a monetary cap (see below).

Second, a landlord may also have an administrative expense claim for any postpetition unpaid rent and other charges due under the lease for the period the tenant uses the property prior to rejection of the lease.

Third, a landlord may also have a general unsecured claim for damages for future rent resulting from a rejection by the debtor of its lease. Such lease rejection damages are capped by Section 502(b)(6)(A). This Code provision limits a landlord’s claim to the rent reserved under the lease for the greater of one year or 15 percent of the remaining lease term not to exceed three years.

Finally, a landlord may also have additional rejection damages, such as for repair and maintenance damage claims.

Bankruptcy Code § 502(b)(6). See also Rejection of Executory Contracts and Unexpired Leases.

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