Regal Fin. Bank v. Heaton (In re Heaton)
May
23
2011
Ruling
Creditor could not set off postpetition assessment of debtor's attorneys' fees against its prepetition claim against debtor.
Procedural posture
Defendant Chapter 11 debtors were prevailing parties in plaintiff creditor's complaint seeking to render nondischargeable a debt evidenced by two pre-bankruptcy commercial guaranties in the creditors' favor. The debtors moved for an award of attorney's fees against the creditor pursuant to an attorney's fees clause in the commercial guaranties.
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Court
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