'Creative Commons' is a basically set of rules for sharing (or not) materials (not just photographs). There are different types of licences:
About the Licences | Creative Commons Australia
Licences grant certain baseline permissions to users in advance, authorising them (or not) to use the material, provided they comply with a number of well-laid conditions.
I am very familiar with CC, that I use for my works. In most cases, I use CC BY-NC 3.0 (non commercial).
In the case listed by the OP, the photo was licensed under BY-SA-2.0 which do allow anyone to use the photo, incl. commercially. The photographer had no rights to sue Kappa IMO.
Personally I would encourage everyone to become more familiar with CC licences, because this is worthwhile IMHO.