In re Konstantin Kupfer; Margarita Kupfer, Debtors.
Karim Salma; Robert Salma, as Trustees of the Salma Family Trust; Lindsey S. Bruel; Riyad R. Salma; Laith K. Salma, Creditors-Appellees. Konstantin Kupfer; Margarita Kupfer, Debtors-Appellants,
and Submitted October 17, 2016 San Francisco, California
from the United States District Court for the Northern
District of California, D.C. No. 3:14-cv-00668-WHO William
Horsley Orrick III, District Judge, Presiding
F.R. Fernandez III (argued), Iain A. Macdonald, and Matthew
J. Olson, Macdonald Fernandez LLP, San Francisco, California,
C. Meyers (argued) and Michele Thompson, Meyers Law Group
P.C., San Francisco, California, for Creditors-Appellees.
Before: Susan P. Graber and Mary H. Murguia, Circuit Judges,
and Mark W. Bennett, [*] District Judge.
panel filed (1) an order redesignating a memorandum
disposition as an opinion, with modifications, and (2) an
opinion vacating the district court's affirmance of the
bankruptcy court's order allowing a claim.
filed a proof of claim for a pre-petition arbitration award
(1) assessing damages against bankruptcy debtors for breaches
of leases and (2) awarding attorney fees and arbitration
panel held that the statutory cap on a landlord's claims
against a tenant in bankruptcy, set forth in 11 U.S.C. §
502(b)(6), applies only to claims that result directly from
the termination of a lease, but not to collateral claims. The
panel held that fees attributable to litigating the
creditors' claims for future rent were capped, because
such claims would not arise were the leases not terminated.
But fees attributable to litigating claims for past rent were
not capped. To the extent that the debtors' counterclaims
in the breach-of-lease litigation concerned ordinary alleged
breaches, independent of a lease termination, the associated
fees and costs were not capped, either.
panel vacated the district court's judgment and remanded
for further proceedings.
request to publish the unpublished Memorandum disposition is
GRANTED. The Memorandum disposition filed October 27, 2016,
is redesignated as an authored Opinion by Judge Graber with