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In re Harvest Oaks Drive Assocs. LLC

In re Harvest Oaks Drive Assocs. LLC

Ruling
Inadvertent error of debtor's counsel in failing to identify source of retainer was not grounds for disgorgement of fees.
Procedural posture

Prior to a bankruptcy petition of a debtor which was in the business of leasing retail shopping space, the debtor paid a first retainer to counsel and a principal of the debtor subsequently made a second retainer payment to counsel. A lender secured by the debtor's commercial real property moved for an order requiring counsel to disgorge the retainers or the unused portion of the retainers.

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Commercial opinion summary, case decided on March 23, 2011 , LexisNexis #0611-108