In re Deluxe Cleaners of Durham Inc.

Ruling: 
Attorneys' fee application denied where firm rendered prepetition services not demonstrably for debtor's benefit and made firm an interested party ineligible for pospetition representation.
Procedural posture: 
Plaintiff trustee filed an adversary proceeding against defendant ex-wife under 11 U.S.C.S. § 542(a) for turnover to the debtor's bankruptcy estate of the post-petition settlement of a personal injury claim that was transferred from a joint checking account to the ex-wife. The ex-wife filed a third-party complaint against third-party defendant debtor for the amount of the transferred funds.
Issue: 
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Commercial case opionion summary, case decided on May 01,2008, LexisNexis #0608-072