Contact:
Hartgen
(703) 739-0800
href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org
CREDITORS CAN
RECOVER ATTORNEY FEES PURSUANT TO A CONTRACT OR STATE STATUTE, ACCORDING
TO NEW ABI POLL
size='3'>November 20, 2006, Alexandria, Va.
size='3'>— A majority (58 percent) of respondents in a recent
American Bankruptcy Institute online poll disagreed that a party may not
recover attorneys’ fees pursuant to a contract or state statute
where the issues involve federal bankruptcy law because only federal law
may authorize such a recovery. Thirty-six percent of respondents
“strongly disagreed” and another 22 percent “disagreed
somewhat” that attorney fees connected to a contract or state
statute could not be recovered where the issues involve federal
bankruptcy law.
Thirty-four percent agreed that
attorneys’ fees may not be recovered through a contract or state
statute as only federal bankruptcy law may authorize such a recovery.
Twenty-three percent of respondents “agreed strongly,” while
11 percent “somewhat agreed” that a party may not recover
attorney fees pursuant to a contract or state contract where the issues
involve federal bankruptcy law. Eight percent did not know or had no
opinion on the issue.
The poll question is
based on a case,
size='3'>Travelers Casualty and Surety Co. v. Pacific Gas and Electric
Co., 167 Fed. Appx. 593, 593-94 (9th Cir.
2006), that was recently granted
size='3'>certiorari by the Supreme Court. The
appeal, brought by Travelers Casualty and Surety Co. of America, seeks
review of the Ninth Circuit's holding that creditors are only entitled
to attorneys’ fees for litigating substantive state law issues (if
provided for by contract), but not issues 'peculiar to bankruptcy law,'
including disclosure statement and chapter 11 plan
objections.
ABI members and members
of the public were welcome to submit their response to the statement:
“A party may not
recover attorney fees pursuant to a contract or state statute where the
issues involve federal bankruptcy law because only federal law may
authorize such a recovery (Travelers Casualty
v. PG&E; 9th Cir.)
size='3'>.” The latest ABI Quick Poll
was open for voting from Nov. 10-Nov. 16.
ABI’s weekly Quick Poll
is posted on ABI’s home page,
href='http://www.abiworld.org/'>
size='3'>www.abiworld.org
size='3'>. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff' size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous
ABI Quick Polls.
###
ABI is the largest
multi-disciplinary, nonpartisan organization dedicated to research and
education on matters related to insolvency. ABI was founded in 1982 to
provide Congress and the public with unbiased analysis of bankruptcy
issues. The ABI membership includes more than 11,500 attorneys,
accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org. For additional conference information,
visit
face='Times New Roman' color='#0000ff'
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.