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In re Kmart Corp. et al., 02-2474

In re Kmart Corp. et al., 02-2474
Court: Northern District of Illinois
Division: Eastern
Judge: Susan Pierson-Sonderby
Issued: February 14, 2007
Issues: Phillip Morris and Bank of New York (among others) seek to assert claims against Kmart (among others) for lease obligations. Kmart asserts the cap on lessor damages contained in code section 502(b)(6) as well as the concepts of claim preclusion (also referred to as res judicata) and issue preclusion (also referred to as collateral estoppel). The Court rules in favor of Phillip Morris for the most part and looks past the limitation on landlord damages because the sophisticated nature of the contracts involved makes these “leases” something other than conventional landlord/tenant vehicles.

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