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In re Black Diamond Mining Co. LLC

In re Black Diamond Mining Co. LLC

Ruling
Involuntary debtor's lawyers' priority claim for fees limited to gap period ordinary course fees incurred after exhaustion of retainer.
Procedural posture

An interested party (objector) challenged a proof of claim filed by a law firm that had already been paid a $300,000 cash retainer in connection with its representation of debtors against which involuntary bankruptcy filings had been made. The firm sought approval for a $61,637 priority claim per 11 U.S.C.S. § 502(f) and 11 U.S.C.S. § 507(a)(3) for services performed in the ordinary course during the gap.

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Commercial opinion summary, case decided on February 10, 2010 , LexisNexis #0410-010