Walton v. HLJ Enters. (In re HLJ Enters.)
Jun
28
2011
Ruling
Accounting firm's application for compensation denied as it was ineligible to provide services to debtor in possession.
Procedural posture
Objectors, the U.S. Trustee (UST) and a creditor, challenged the right of an accounting firm to compensation based on its second application for compensation and also sought an order requiring the firm to disgorge fees previously paid to it. At issue was whether the firm was ineligible to serve as an accountant for debtor in possession (DIP) by reason of 11 U.S.C.S. § 327(a).
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Court
:
- 11 U.S.C.
In re Copeland
Jun
16
2011
Ruling
Attorney who represented debtor in class action settlement was not employed by trustee, not authorized by court and not entitled to fees.
Procedural posture
Debtor filed a petition under chapter 7 of the Bankruptcy Code, and an attorney who represented the debtor in class action settlement proceedings and recovered $19,944 for the debtor's bankruptcy estate filed an Application for Administrative Expenses, seeking payment of $10,000. The United States Trustee filed an objection to the attorney's claim.
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Court
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In re Byington
Jun
13
2011
Ruling
Debtor's counsel not entitled to fees related to proceedings concerning inadequate disclosure.
Procedural posture
Chapter 11 debtors, individuals, filed an application to employ legal counsel. The United States Trustee filed an objection to employment on the basis of inconsistent and inaccurate disclosures regarding the pre-petition services rendered by the firm to the debtors, including the nondisclosure of the payment of the $1,039 filing fee on debtor's behalf, by the debtor's son from his corporate account.
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Court
:
- 11 U.S.C.
In re Harris Agency LLC
Jun
02
2011
Ruling
Debtor's attorneys ordered to disgorge undisclosed postpetition fees.
Procedural posture
Debtor LLC filed a petition under Chapter 11 of the Bankruptcy Code and obtained permission to hire a law firm to represent its interests. The law firm filed First and Second Interim Applications for Compensation and Reimbursement of Expenses, and the United States Trustee ("UST") and the Chapter 11 Trustee filed objections.
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Court
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In re Acosta
May
25
2011
Ruling
Broker's commission on sale of debtor's property limited due to violation of court order prohibiting dual agency.
Procedural posture
A Chapter 11 debtor, a real estate broker, and two real estate agents asked the court to allow payment in full of real estate commissions in connection with the debtor's sales of real property even though the court authorized broker did not comply with the court's order under 11 U.S.C.S. § 327(a) prohibiting it from representing both the seller (the debtor) and any buyer of the two properties.
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Court
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In re Moon Thai & Japanese Inc.
Apr
08
2011
Ruling
Attorneys suspended from practice and ordered to complete bankruptcy CLE due to serious concerns regarding representation of clients.
Procedural posture
The court issued an order which directed two attorneys who were partners in a law firm, and the firm, to show cause why they should not be suspended from practicing bankruptcy law for their conduct in representing various clients who declared bankruptcy, and it directed the attorneys to hire outside counsel to review procedures the firm used when representing clients in chapter 11 and chapter 13 bankruptcy cases.
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Court
:
- 11 U.S.C.
In re McKenzie
Mar
08
2011
Ruling
Creditor's challenge to debtor's attorneys' fees denied except as to two weeks of prepetition services.
Procedural posture
Citing Fed. R. Civ. P. 60, 11 U.S.C.S. § 327, Fed. R. Bankr. P. 2014, movant creditor, a claimant prosecuting a claim for $750,000 in unpaid legal fees, challenged various aspects of orders relating to the retention of counsel for debtor. Issues included whether employment in debtor's Chapter 7 case may be authorized retroactively and whether any mistake exists that necessitated reconsideration of an order granting the fifth fee application.
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Court
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In re Liebfried Aviation Inc.
Feb
25
2011
Ruling
Accountant's fee application denied due to failure to disclose connection to debtor's principal and affiliated entity.
Procedural posture
This matter came before the court for hearing on an accountant's (applicant's) Application for Compensation for Professional Services Rendered From June 1, 2009 through August 31, 2009, with Supplement, and the Chapter 7 trustee's objection thereto.
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Court
:
- 11 U.S.C.
In re Age Ref. Inc.
Feb
22
2011
Ruling
Trustee's retention of two law firms to pursue avoidance proceedings with split contingency fee approved over creditor's objection.
Procedural posture
A bankruptcy trustee proposed an agreement whereby the trustee would retain two law firms, the trustee's general counsel and counsel for a creditors' committee, to pursue specified claims of preferential or fraudulent transfers and to receive compensation on a reduced hourly fee basis and a contingent fee split between the firms. A creditor and former officer of the bankruptcy debtor who was subject to such litigation objected to the agreement.
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Court
:
In re Sarao
Feb
01
2011
Ruling
Trustee could employ attorney also representing creditor where interests in maximizing size of estate were aligned.
Procedural posture
Chapter 7 trustee filed an application under 11 U.S.C.S. § 327(c) to employ an attorney and his law firm as special counsel to represent the trustee in prosecuting a pending adversary proceeding against the debtor's father. The father objected.
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Court
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