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ABI Journal

January 16, 2025

Fifth Circuit Arguably Expands the Barton Doctrine’s Ultra Vires Exception

A receiver was tagged $45,000 for failing to turn over estate property by demanding payment of administrative fees.

5th Circuit

November 21, 2024

Jackson Walker May Depose the U.S. Trustee in the Fee Dispute over Nondisclosure

The bankruptcy judge in Houston denied the U.S. Trustee’s motion to quash deposition subpoenas in the fight over disgorgement of fees for failure to disclose an allegedly close relationship between the judge and a firm lawyer.

5th Circuit, Texas, Texas Southern District

November 20, 2024

BAP Rejects Due Process Attack for Denial of ‘13’ Trustee Fees on Dismissal

Ninth Circuit BAP says there is no due process problem with denial of chapter 13 trustee fees if dismissal precedes confirmation.

9th Circuit

October 21, 2024

Trustees’ Commissions Are Based on Distributions Made to Co-Owners of Property Sold

Bankruptcy courts are divided on whether the calculation of a trustee’s commissions includes distributions made to co-owners of property that the trustee has sold.

4th Circuit, Maryland

August 08, 2024

Circuit Says Retaining Jurisdiction Not Required to Impose Fees Under Section 303(i)

Motions for fees must be made within 14 days of the entry of judgment.

1st Circuit

August 02, 2024

Split Fourth Circuit Panel Bars Use of Equity to Correct an Oversight in Retention

The majority in the Fourth Circuit based a bright-line rule on the presence of the word ‘the’ in Section 327(a).

4th Circuit

July 10, 2024

A Partial Ethical Wall Didn’t Give Rise to Disinterestedness, Judge Kenney Said

Expedience is no substitute for disinterestedness when it comes to retention of a chapter 11 debtor’s general counsel.

4th Circuit, Virginia, Virginia Eastern District

June 17, 2024

No Refunds for Overpayment of Unconstitutional U.S. Trustee Fees, Supreme Court Rules

Saying that the constitutional infirmity was “small” and “short-lived,” the majority decided that prospective relief was enough because Congress subsequently enacted a law mandating uniformity in the future with regard to fees for U.S. Trustees and Bankruptcy Administrators

Supreme Court

June 05, 2024

Concurrent Representation of a Major Creditor/Shareholder Is/Isn’t Disqualifying

Concurrent representation of a 43% shareholder was disqualifying while representing a creditor with 79% of the debt did not disqualify.

3rd Circuit, New Jersey

June 04, 2024

What Are ‘7’ Trustees Paid When the Case Converts to ‘13’ Before Distributions?

Courts have at least six theories about compensation for chapter 7 trustees for valuable services rendered when the case converts to chapter 13 before the trustee has made any distributions.

10th Circuit, New Mexico