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Expert Analysis

NY Bankruptcy Court Pivots On Commercial Rent Damage Cap

By Mark Edelstein, Theresa Foudy and Martha Martir ( April 28, 2023, 2:45 PM EDT) -- Departing from prior precedent, a recent opinion by the U.S. Bankruptcy Court for the Southern District of New York in In Re: Cortlandt Liquidating LLC[1] effectively lowered the Bankruptcy Code Section 502(b)(6) cap on rejection damages that a commercial real estate landlord may claim by holding that the cap should be calculated using the time approach rather than the rent approach....

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