Sobel v. Sells (In re Gordon Props. LLC)
May
17
2013
Ruling
Individuals who owned debtor developer LLC could not hire debtor's attorneys to represent them in action brought by condominium owners.
Procedural posture
Plaintiff condominium owners filed an action in a Virginia court, alleging that defendants, an owners' association and individuals who owned a limited liability company ("LLC") that declared chapter 11 bankruptcy, violated the condominium owners' rights. The case was removed to the bankruptcy court, where three individuals who owned the LLC asked the court for permission to hire the LLC's attorney to represent them.
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Court
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