In re Deluxe Cleaners of Durham Inc.

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.
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Commercial case opionion summary, case decided on May 01,2008, LexisNexis #0608-072