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ABI Journal

April 28, 2025

Debtors’ Lawyer Has No 7th Amendment Right to Sue for Post-Petition Fees, Circuit Says

The debtors’ inequitable conduct didn’t relieve counsel of the duty to disclose fees charged for post-petition litigation.

3rd Circuit

April 16, 2025

In Sub V, No Compensation for a Rehearing Motion Contrary to Circuit Authority

After the court had denied contract assumption, there was no compensation for keeping assumption alive pending appeal.

9th Circuit, California, California Eastern District

April 14, 2025

The Fate of Jackson Walker Is Now in the Hands of a District Judge from Another District

The district judge who excoriated Jackson Walker in a decision last year will now decide whether the firm must disgorge what it was paid in dozens of large chapter 11 cases.

5th Circuit, Texas, Texas Southern District

April 02, 2025

A Contempt Sanction Is Not a ‘Money Judgment’ and Doesn’t Require Writ of Execution

A contempt sanction upholds the integrity of the court and doesn’t invoke Rule 69(a).

2nd Circuit, New York, New York Southern District

March 20, 2025

Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions

Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).

6th Circuit, Ohio, Ohio Southern District

March 04, 2025

For an Individual Chapter 11 Debtor, the Usual Retention Rules Don’t Always Apply

When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.

5th Circuit, Texas, Texas Western District

February 05, 2025

‘Evergreen’ Retainers Are Ok Only in ‘Exceptional’ Sub V Cases, Judge Gunn Says

Washington, D.C.’s Judge Gunn describes the procedures to employ for approval and operation of an ‘evergreen’ retainer in chapter 11.

D.C. Circuit

January 23, 2025

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

4th Circuit

January 22, 2025

Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal

Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’

3rd Circuit, Delaware

January 17, 2025

The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award

A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.

3rd Circuit, New Jersey