In re Source Enters.
Mar
27
2008
Ruling
Attorneys' fees denied where firm held undisclosed interest adverse to estate.
Procedural posture
A law firm applied for payment of fees and reimbursement of expenses in connection with its representation of the debtor in a chapter 11 bankruptcy case.
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Court
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In re Hettick
Mar
13
2008
Ruling
Attorney representing creditors in case could be hired by trustee to recover newly discovered asset due to alignment of interest.
Procedural posture
The chapter 7 Trustee filed an application to employ an attorney and his law firm on a contingency fee basis for the sole purpose of recovering a newly discovered asset. An objection was filed on the grounds that the attorney had a conflict of interest in that he and his firm were representing creditors in the instant case.
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Court
:
- 11 U.S.C.
In re First Magnus Fin. Corp.
Feb
28
2008
Ruling
Hiring of professional to conduct court-approved sale aproved retroactively.
Procedural posture
An estate professional that failed to get court pre-approval for its services under 11 U.S.C.S. § 327 and Fed. R. Bankr. P. 2014 filed a motion under Fed. R. Civ. P. 59 to alter or amend the court's order rejecting its request for a commission.
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Court
:
- 11 U.S.C.
In re Rennie Petroleum Corp.
Feb
25
2008
Ruling
Retroactive approval of employment of professional business analyst denied.
Procedural posture
The debtor moved for entry of an order approving the retroactive employment of a professional person under 11 U.S.C.S. § 327, alternatively, for an order awarding compensation to the professional person for making a substantial contribution to the case under 11 U.S.C.S. § 503(b)(4). The trustee in bankruptcy and counsel for the creditors' committee opposed the motion.
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Court
:
In re McEver
Feb
12
2008
Ruling
Fact that colleague at former law firm had served as officer of two corporations of which debtor was a shareholder was not grounds for disqualification of counsel.
Procedural posture
Movant, the Acting United States Trustee (UST), filed a motion to set aside an order that granted the application to employ counsel for the debtor. The UST contended that counsel was disqualified from representing the debtor because an attorney in counsel's former law firm would have been disqualified.
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Court
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Hogil Pharm. Corp. v. Sapir (In re Innomed Labs LLC)
Jan
29
2008
Ruling
Law firm that previously represented co-owner of debtor LLC could represent trustee where co-owner did not hold adverse interest to estate.
Procedural posture
Appellants, a pharmaceutical corporation and one of its co-owners, challenged an order of the U.S. Bankruptcy Court authorizing appellee, a chapter 7 trustee of a debtor, to retain special legal counsel to investigate and possibly litigate claims by the debtor against appellants. Appellants argued that the law firm appointed as counsel to the trustee held interests adverse to the estate and was not disinterested.
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Court
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In re Mitchell
Jan
18
2008
Ruling
Real estate brokerage firm could be retained to market estate commercial property despite principal's conections with bank holding deed of trust.
Procedural posture
The chapter 7 Trustee applied to hire a real estate brokerage firm to market estate commercial real property. The United States Trustee objected, arguing that the firm was disqualified from acting for the estate because one of its principals owned stock in the parent company of the bank which held the first deed of trust on the property and also sat on the board of directors of that company. This connection was disclosed in the application.
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Court
:
In re Greebelt CT Imaging Ctr. LLC
Jan
03
2008
Ruling
Debtor could not retain accounting firm that had potentially adverse interests to the estate.
Procedural posture
A debtor filed for relief under chapter 11 of the Bankruptcy Code. The debtor filed an application for an order authorizing retention of an accounting firm as the debtor's accountant nunc pro tunc. A U.S. trustee and the debtor's principal secured creditor opposed the application.
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Court
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In re Eagle Broadband Inc.
Dec
06
2007
Ruling
Application for employment of special corporate counsel denied where on firm attorney had served as debtor's corporate secretary.
Procedural posture
The debtors, 12 related entities, filed for relief under chapter 11 and remained debtors-in-possession. The debtors filed an application for authority to employ special corporate counsel, pursuant to 11 U.S.C. § 327(e). The court issued findings of fact and conclusions of law.
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Court
:
In re Flanagan
Oct
22
2007
Ruling
Application for contingency fee based on amounts recovered for the estate reduced by amounts related to sale of properties that already belonged to the estate.
Procedural posture
An attorney who was employed by a chapter 7 trustee with the court's approval, pursuant to 11 U.S.C. § 327(a), filed an application for approval of attorney's fees in the amount of $66,746.27, and expenses in the amount of $71.02. A creditor filed an objection to the application.
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Court
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