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§ 327

In re Daigle

Ruling
Trustee's motion to employ debtor's attorneys as counsel to investigate possible fraud involving debtor's former spouse denied on former spouse's objection.
Procedural posture

A Chapter 7 trustee filed a motion to employ counsel pursuant to 11 U.S.C.S. § 327(e). The two attorneys represented the debtor, and one of the attorneys represented the debtor prior to his bankruptcy filing. The debtor's former spouse, who was a creditor, opposed the application.

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Consumer opinion summary, case decided on January 19, 2011 , LexisNexis #0211-038

In re Fish & Fisher Inc.

Ruling
Trustee's application to engage accounting firm that had sold its claim against debtor denied on reconsideration.
Procedural posture

The court issued an order on August 18, 2010, which approved a Chapter 11 trustee's application seeking permission under 11 U.S.C.S. § 327 to hire an LLP to perform work as accountants, auditors, and tax consultants for the trustee. The United States Trustee ("UST") reviewed that order and filed a motion which asked the court to reconsider its order, and two individuals who held ownership interests in the debtor joined the UST's motion.

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Commercial opinion summary, case decided on December 17, 2010 , LexisNexis #0111-073

In re JMK Constr. Group Ltd.

Ruling
Debtors could not seek to retain joint counsel or accountants where possible contribution claim created conflict.
Procedural posture

A jury sitting in the U.S. District Court for the Southern District of New York returned a verdict against debtors, a corporation and three individuals, and the debtors declared Chapter 11 bankruptcy and sought permission under 11 U.S.C.S. § 327 to hire a law firm, special litigation counsel, and an accountant to represent them in their bankruptcy cases. The United States Trustee and a judgment creditor opposed the debtors' requests.

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Commercial opinion summary, case decided on December 09, 2010 , LexisNexis #0111-001

In re Lyons

Ruling
Nunc pro tunc appointment of special counsel to settle claim denied where successor to debtor's original law firm had not sought permission to represent debtor.
Procedural posture

Debtors filed a petition under Chapter 13 of the Bankruptcy Code in September 2002, and converted their case to one under Chapter 7 of the Bankruptcy Code in 2008. A trustee was appointed to administer the debtors' Chapter 7 estate, and he filed an application seeking permission to employ special counsel nunc pro tunc, to compromise a controversy pursuant to Fed. R. Bankr. P. 9019, to pay a contingency fee and expenses to a law firm.

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Consumer opinion summary, case decided on November 04, 2010 , LexisNexis #1210-067

In re Oakwood Country Club Inc.

Ruling
Debtor's attorneys' fees approved less amounts arising from proposed sale that breached debtor's duty to unsecured creditors.
Procedural posture

Pursuant to 11 U.S.C.S. § 327, debtor filed a motion for compensation for its counsel.

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Commercial opinion summary, case decided on November 01, 2010 , LexisNexis #0111-037

In re Avon Townhomes Venture

Ruling
Real estate broker that had not obtained court permission to provide services to debtor ordered to disgorge commission.
Procedural posture

Debtor, an entity that was created to develop real property, declared bankruptcy and asked the court for permission to sell its sole asset: a parcel of partially-developed property in Lathrop, California. The court issued an order on July 30, 2010, which directed a real estate broker and a company the broker owned to respond to the court's preliminary decision to order the broker and his company to disgorge a commission they were paid.

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Commercial opinion summary, case decided on October 15, 2010 , LexisNexis #1210-102

In re Sea Island Co.

Ruling
Retention of law firm to represent debtor nunc pro tunc approved provided firm established screen for individual lawyers who were creditors.
Procedural posture

Chapter 11 debtors filed an unopposed application under 11 U.S.C.S. § 327 for the authority to retain a law firm as co-counsel to the debtors nunc pro tunc to the petition date.

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Commercial opinion summary, case decided on September 20, 2010 , LexisNexis #1210-071

In re Saden

Ruling
Attorney who was a creditor holding adverse interest to estate was not disinterested and could not serve as debtor's general bankruptcy counsel.
Procedural posture

Before the court was debtor's application to engage a certain counsel as debtor's general bankruptcy counsel. The U.S. Trustee objected to the application. A hearing was held.

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Consumer opinion summary, case decided on September 09, 2010 , LexisNexis #1010-107

In re Project Orange Assocs. LLC

Ruling
Firm's application to serve as debtor's counsel denied due to ongoing relationship with largest creditor.
Procedural posture

Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code on April 29, 2010, and on May 20, 2010, a law firm filed an application seeking appointment as the debtor's general bankruptcy counsel under 11 U.S.C.S. § 327(a). The United States Trustee (UST) filed an objection to the firm's application, claiming that the firm's ongoing relationship with the debtor's largest creditor created a conflict of interest.

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Commercial opinion summary, case decided on June 23, 2010 , LexisNexis #0910-036

In re Universal Enters. of W. Va. LLC

Ruling
Debtor could retain law firm that also represented an associated debtor that leased debtor's property.
Procedural posture

Creditor bank objected to the application of the debtor to employ a law firm as its legal counsel. The law firm also represented an associated chapter 11 debtor that leased property from the debtor.

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Commercial opinion summary, case decided on June 09, 2010 , LexisNexis #0810-075