In re Egwu
Oct
19
2012
Ruling
Debtor's former attorney's fees ordered disgorged due to failure to disclose fee sharing arrangement.
Procedural posture
Debtor's former attorney filed an application for attorneys' fees per 11 U.S.C.S. § 503(a) and an objection to confirmation of the debtor's chapter 13 plan because it did not propose to pay any of the fees the attorney sought to recover.
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Court
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In re Kim
Sep
06
2012
Ruling
Debtor's attorney ordered to disgorge portion of fees deemed not reasonable.
Procedural posture
Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's case. The trustee asked the court to determine the reasonableness of fees the debtor paid to his attorney and sought an order which required the debtor's counsel to disgorge fees the court found were unreasonable. The court held a hearing on the trustee's motion.
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Court
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In re McCorvey
Jun
25
2012
Ruling
Debtor's attorneys' fees ordered disgorged as excessive and due to failure to comply with disclosure requirements.
Procedural posture
The United States Trustee filed a motion seeking disgorgement of fees paid to an attorney and/or his law firm and to a bankruptcy petition preparer. The UST also sought to enjoin the attorney and the petition preparer from preparing any bankruptcy petition in the Northern District of Ohio and to enjoin the attorney from practicing law in the Northern District of Ohio without being properly admitted.
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Court
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In re South Station LLC
Dec
13
2011
Ruling
Debtor's attorneys' fees disallowed due to failure to disclose payments from debtor's principal.
Procedural posture
Law firm representing a debtor filed an application for attorneys' fees and costs pursuant to 11 U.S.C.S. §§ 329 and 330 and Fed. R. Bankr. P. 2016. The chapter 7 trustee filed an objection to the application on the grounds that the law firm failed to comply with the disclosure requirements of Fed. R. Bankr. P. 2016.
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Court
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In re Gluth Bros. Constr. Inc.
Oct
19
2011
Ruling
Debtor's law firm ordered to disgorge large portion of fee due to failure to disclose representation of debtor's largest creditor.
Procedural posture
The United States Trustee, joined by the Creditor Trustees on behalf of the liquidating trust formed by the confirmation of the debtor's chapter 11 Plan, objected to the final fee application filed by the Debtor's attorneys (the law firm) and also sought to disgorge the fees previously received by the law firm.
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Court
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In re Ball
Sep
23
2011
Ruling
One half of amount of attorneys' fee requested allowed due to late filing of application.
Procedural posture
In a chapter 13 bankruptcy case, counsel for the debtors filed a fee application after failing to timely file a disclosure statement under Fed. R. Bankr. P. 2016(b).
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Court
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Garcia v. Miller (In re Garcia)
May
10
2011
Ruling
Bankruptcy court order that attorney was not subject to section 329(a) remanded for factual determination.
Procedural posture
Movant debtor sought review of a determination by the U.S. Bankruptcy Court for the Northern District of Illinois that defendant, an attorney who had represented the debtor prior to the debtor filing bankruptcy, was not subject to 11 U.S.C.S. § 329.
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Court
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In re Jahed
Mar
07
2011
Ruling
Court declined to sanction debtor's former counsel for failure to appear at hearing on debtor's pro se motion for extension of time to obtain new counsel.
Procedural posture
Debtor's counsel was ordered to show cause why sanctions including possible suspension from practice should not be imposed for his failure to appear at a hearing on debtor's motion to extend time to "pursue other legal counsel." The court also considered issues raised by the U.S. Trustee (UST) as to whether the compensation paid to counsel was reasonable per 11 U.S.C.S. § 329(a) and Fed. R. Bankr. P. 2016(b).
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Court
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Rushton v. Woodbury & Kesler PC (In re C.W. Mining Co.)
Sep
30
2010
Ruling
Debtor's attorneys ordered to disgorge fees received from debtor due to acceptance of compensation from companies with competing interests.
Procedural posture
Chapter 7 trustee filed an adversary proceedings against defendants, an attorney and the attorney's law firm, seeking an order requiring defendants to disgorge all fees they were paid for work performed on a mining company's bankruptcy case and turnover of documents defendants claimed were privileged. The trustee filed a motion for partial summary judgment.
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Court
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DeAngelis v. Geisenberger (In re Ressler Hardwoods & Flooring Inc.)
Jun
08
2010
Ruling
Attorney who did not disclose active involvement in sale of debtor's stock ordered to disgorge fees.
Procedural posture
Movant, the acting United States Trustee (UST) filed a motion to disqualify respondents, a lawyer and his law firm, from acting as counsel to a chapter 7 debtor and to require the disgorgement of the professional fees that the attorney received through the debtor's chapter 11 bankruptcy case.
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Court
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