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In re Penney

In re Penney

Ruling
Court denied a trustee's application to employ counsel due to an actual conflict of interest in counsel representing a creditor and the estate.
Procedural posture

The chapter 7 trustee filed an application to employ counsel. Proposed counsel and his firm represented a secured creditor with a claim against the bankruptcy estate. The issue was whether an actual conflict of interest existed with respect to counsel's dual representation of the creditor and the estate.

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opinion summary, case decided on September 26, 2005 , LexisNexis #0406-041