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§ 504

Davis, In re

Ruling
Debtor's bankruptcy counsel’s referral fee for special counsel was subject to prohibitionagainst fee sharing. (Bankr. M.D. Fla.)
Issue(s)
Sharing of Compensation.

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Consumer opinion summary, case decided on March 31, 2022 , LexisNexis #0622-007

Bugay, In re

Ruling
Special counsel's agreement to share a portion of her attorney's fee with the debtor'sbankruptcy counsel disallowed. (Bankr. M.D. Fla.)
Issue(s)
Sharing of Compensation.

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Consumer opinion summary, case decided on June 07, 2021 , LexisNexis #0921-034

Thach, In re

Ruling
Attorneys ordered to show cause why sanctions should not be imposed as it appeared thatthey may have engaged in an unlawful fee sharing arrangement. (Bankr. S.D. Ohio)
Issue(s)
Sharing of Compensation; Prohibition of Sharing and Agreements to Share.

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Consumer opinion summary, case decided on February 13, 2020 , LexisNexis #0520-028

Ferguson, In re

Ruling
Court concluded that of counsel agreement was a thinly veiled, albeit fully disclosed, attemptto bypass the prohibition against fee sharing. (Bankr. N.D. Ala.)
Issue(s)
Sharing of Compensation; Prohibition of Sharing and Agreements to Share.

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Consumer opinion summary, case decided on March 15, 2019 , LexisNexis #0519-031

Richard, In re

Ruling
Court ordered Illinois LLC to disgorge fees from consolidated cases as its fee-sharing agreement was in violation of section 504 since they did not form a single law firm with Missouri attorneys. (Bankr. E.D. Mo.)
Issue(s)
Sharing of Compensation.

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Consumer opinion summary, case decided on October 10, 2018 , LexisNexis #1118-068

Harris-Nutall, In re

Ruling
Co-counsel agreement cancelled as the special counsel and debtor's counsel did not fit within one of the statutory exceptions of § 504(b). (Bankr. N.D. Tex.)
Issue(s)
Sharing of Compensation; Sharing Allowed.

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Consumer opinion summary, case decided on June 09, 2017 , LexisNexis #0717-042

In re Bay

Ruling
Attorney's fee sharing agreement with firm of she was not a member was invalid.
Procedural posture

The court issued an order to show cause directed to the debtor's counsel. It held an evidentiary hearing.

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Consumer opinion summary, case decided on June 18, 2013 , LexisNexis #0713-041

In re Ferguson

Ruling
Attorney's one-third contingency fee for work on debtor's tort claim on behalf of trustee denied.
Procedural posture

An attorney for chapter 13 trustee filed a final fee request, which sought a one-third contingency fee. The debtors objected.

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Consumer opinion summary, case decided on March 30, 2011 , LexisNexis #0711-009

Goldberg v. Clay (In re Smith)

Ruling
Referral fee paid to debtor's attorney upon settlement of debtor's civil action ordered disgorged.
Procedural posture

Plaintiff chapter 7 trustee sought the disgorgement of a referral fee received in the post-petition period by defendant, chapter 7 debtor's bankruptcy attorney, on the grounds that the fee was received in violation of 11 U.S.C.S. § 504(a).

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Consumer opinion summary, case decided on December 09, 2008 , LexisNexis #0109-067

In re Winstar Communs.

Ruling
Agreement between law firm, consulting firm and lender to "hedge" contingency fees in litigation for chapter 7 trustee denied as "fee sharing."
Procedural posture

The law firm and its consulting firm, both retained to complete commercial litigation on behalf of the chapter 7 trustee, moved for the authority to enter into an agreement with a lender to "hedge" a portion of their anticipated contingency fees for the litigation, which was on appeal. The United States trustee filed an objection to the motion, claiming the agreement violated the prohibition of fee sharing of 11 U.S.C. § 504.

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Commercial opinion summary, case decided on December 04, 2007 , LexisNexis #1207-131