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§ 327(a)

In re LPN Healthcare Facility Inc.

Ruling
Employment of accounting firm vacated due to lack of disinterestedness.
Issue(s)
Should employment of accounting firm that maintained connections with entities related to debtor, but that performed necessary services, be vacated.

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Commercial opinion summary, case decided on September 10, 2013 , LexisNexis #1013-072

In re Barnes

Ruling
Trustee could not employ judgment creditor's attorney as special counsel to pursue related claims.
Procedural posture

A chapter 7 trustee filed an application to employ and attorney and her firm as special counsel for the estate pursuant to 11 U.S.C.S. § 327(a). The debtor objected to the employment.

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Consumer opinion summary, case decided on July 16, 2013 , LexisNexis #0813-038

In re Seven Counties Servs.

Ruling
Nunc pro tunc employment of public relations firm approved as work did not fall under bankruptcy code.
Procedural posture

A chapter 11 debtor-in-possession filed a motion for nunc pro tunc authority to employ and compensate a public relations firm pursuant to 11 U.S.C.S. § 1108 and to issue payment for reimbursable expenses incurred pre-petition. Both the Kentucky Employers Retirement Systems (KERS) and Kentucky Retirement Systems (KRS) objected, arguing that 11 U.S.C.S. § 327 applied and that the firm could not be employed because it was not a disinterested person.

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Commercial opinion summary, case decided on July 15, 2013 , LexisNexis #0813-039

Sobel v. Sells (In re Gordon Props. LLC)

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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Commercial opinion summary, case decided on May 17, 2013 , LexisNexis #0613-038

In re Martin Designs Inc.

Ruling
Scope of trustee's law firm's employment expanded to allow firm to oppose fee application of special litigation counsel.
Procedural posture

Chapter 7 trustee moved pursuant to 11 U.S.C.S. § 327(a) to expand the scope of a law firm's employment to permit the law firm to assist the trustee in challenging the fee application filed by the trustee's former counsel. Former counsel opposed the application.

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Commercial opinion summary, case decided on March 22, 2013 , LexisNexis #0413-107

In re Osborne

Ruling
Trustee's interim fee application granted with respect to services rendered in recovery of assets for the estate.
Procedural posture

The matter under advisement was the first interim application filed by the chapter 7 Trustee, for approval of fees and expenses for special counsel for the Trustee. Debtor objected to the payment of any fees to the special counsel.

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Consumer opinion summary, case decided on December 21, 2012 , LexisNexis #0113-039

In re Biddle

Ruling
Application for employment of attorneys for debtor in possession denied due to failure to disclose insider status.
Procedural posture

Chapter 11 debtors filed an application for employment of an attorney to represent them as debtors-in-possession. The U.S. Trustee objected.

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Consumer opinion summary, case decided on December 07, 2012 , LexisNexis #0113-038

In re Knight-Celotex

Ruling
Debtor companies' D&O claims against debtor could be assigned to bank.
Procedural posture

Appellant debtor appealed the decision by the United States District Court for the Northern District of Illinois, Eastern Division, affirming a bankruptcy court's order permitting the debtor companies' (companies) chapter 7 bankruptcy trustee to assign to a bank certain causes of action that the companies' estate held against the debtor as an individual. The debtor and the companies had filed separate bankruptcy proceedings.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 05, 2012 , LexisNexis #1012-005

In re Sportsmans Link Inc.

Ruling
Fees of firm that acted as counsel for debtor and special counsel for trustee reduced due to undisclosed relationships with creditors.
Procedural posture

United States Trustee filed a motion to impose a sanction for violation of Fed. R. Bankr. P. 2014 by a law firm, which acted as counsel for debtor while it was in chapter 11 bankruptcy and as special counsel for the chapter 7 trustee upon the debtor's conversion to chapter 7.

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Commercial opinion summary, case decided on July 17, 2012 , LexisNexis #0812-005

In re SBMC Healthcare LLC

Ruling
Debtor could employ law firm that waived claim against the estate.
Procedural posture

Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code and asked the court for permission to employ a law firm that represented the debtor before it declared bankruptcy. The United States Trustee ("UST") filed an objection.

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Commercial opinion summary, case decided on June 18, 2012 , LexisNexis #0712-036