In re Kobra Props.
Jun
01
2009
Ruling
Trustee granted permission to hire law firm that had represented unsecured creditors' committee given similar interests in optimizing value of estate.
Procedural posture
Debtors, a California general partnership and three California limited liability companies, filed petitions under chapter 11 of the Bankruptcy Code. The court ordered joint administration and appointed a trustee to represent the bankruptcy estates, and the trustee filed a motion seeking permission to hire a law firm that had represented a committee of unsecured creditors. The U.S. trustee (UST) filed an objection to the motion.
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Court
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In re Bird
Oct
17
2008
Ruling
Nunc pro tunc approval of attorneys'fees from period before filing of application for approval denied.
Procedural posture
An attorney for the chapter 7 trustee requested reimbursement for fees and expenses incurred prior to the date of the filing of an application to approve the attorney's employment.
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Court
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- 11 U.S.C.
In re Champ Car World Series LLC
Oct
10
2008
Ruling
Law firm that had previously represented a creditor did not have an adverse interest to the estate and could be employed by trustee.
Procedural posture
The creditors objected to a trustee's application to employ a law firm as special counsel (SC), pursuant to 11 U.S.C.S. § 327(a), for the specific purpose of investigating and prosecuting potential bankruptcy estate claims against the chapter 11 debtors' insiders.
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Court
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In re Winterville Marine Servs.
Apr
16
2008
Ruling
Trustee could hire counsel that had represented parties with claims against debtor where there was no interest adverse to estate.
Procedural posture
A corporate debtor filed a petition under chapter 7, and a trustee was appointed to represent the bankruptcy estate. The trustee filed an application to hire counsel to assist him in prosecuting an adversary proceeding he filed, and after the court denied the trustee's application because it was filed under 11 U.S.C.S. § 327(e), the trustee filed a First Amended Application under 11 U.S.C.S. § 327(a).
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Court
:
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
:
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
:
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
:
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 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
:
In re Stout
Jul
31
2007
Ruling
Trustee's application to appoint self as debtor's attorney nunc pro tunc denied.
Procedural posture
The debtor petitioned for relief under chapter 7, and the chapter 7 trustee was appointed. The trustee filed an application to employ the trustee and its law firm nunc pro tunc as the debtor's attorney, pursuant to 11 U.S.C. § 327(a) and Fed. R. Bankr. P. 2014(a), because the trustee claimed that he had performed services which were normally performed by an attorney.
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Court
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