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ABI Journal

October 15, 2021

Supreme Court Update: Equitable Mootness Not Ready for Prime Time

An arbitration case to be argued in November may inform bankruptcy courts whether they must enforce arbitration agreements.

Supreme Court

October 13, 2021

Bifurcated Fee Arrangements Barred in Western District of Kentucky

Curiously, bifurcated fee arrangements are sometimes permitted in the Eastern District of Kentucky.

6th Circuit, Kentucky, Kentucky Western District

October 08, 2021

Supreme Court Likely to Tackle 2018 U.S. Trustee Fee Increase

The circuits are now split 2/2 on whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because the increase didn’t apply immediately in bankruptcy administrator districts.

10th Circuit

August 04, 2021

Chapter 13 Trustees Are Paid Even if Dismissal Comes Before Confirmation, BAP Says

The Ninth Circuit BAP joins the minority on an issue that’s headed for the court of appeals.

9th Circuit

July 21, 2021

Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

6th Circuit, Ohio, Ohio Southern District

July 15, 2021

Fees Benefiting Only the Debtor — and Not the Estate — Are Compensable in Chapter 13

Section 330(a)(4)(B) is an exception to the American Rule and the notion that administrative expenses must benefit the estate, not just the debtor.

5th Circuit, Texas, Texas Northern District

July 07, 2021

Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says

A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.

3rd Circuit, Delaware

June 25, 2021

Eighth Circuit BAP Approves the Amount of Bifurcated Fees Paid After Filing

Courts are continuing to grapple with bifurcated fee arrangements allowing chapter 7 debtors to pay the entire fee after filing.

8th Circuit

June 21, 2021

Standards Laid Down for Bifurcated Fee Arrangement in the Southern District of Florida

Local or state bar groups should work up standard-form retainer agreements and disclosures to facilitate bifurcated fee arrangements.

11th Circuit, Florida, Florida Southern District

June 16, 2021

Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order

So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.

9th Circuit, California, California Central District