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On Aug. 30, 2016, in Roberts Broadcasting v. McKitrick,[1] the U.S. District Court for the Eastern District of Missouri (Eastern Division) decided that a legal malpractice claim against bankruptcy counsel based on services rendered in the bankruptcy case “arises in” a case under the Bankruptcy Code. By concluding that the malpractice claim arose in a case under the Code, the district court determined that it had federal subject-matter jurisdiction over the case pursuant to 28 U.S.C. § 1334(b).
Electronic signature software, such as DocuSign, is increasingly accepted in commercial transactions as an enforceable means of signing contracts and other agreements. However, in a recent decision by the U.S. Bankruptcy Court for the Eastern District of California, In re Mayfield,[1] the court sanctioned a bankruptcy attorney who had his client DocuSign his bankruptcy petition, schedules and other related bankruptcy documents filed with the court because such signatures are not original signatures as required by bankruptcy rules.
Recently, in In re Frantz,[1] the U.S. District Court for the District of Idaho affirmed the bankruptcy court’s assessment of $49,477.46 in sanctions against the debtors and their attorney for improper litigation tactics. The court held that evidence that the debtors delayed filing motions to disqualify Idaho Independent Bank’s (IIB’s) counsel and expert witnesses until shortly before trial was sufficient to support a finding of bad faith.
On March 25, 2015, the U.S. Bankruptcy Court for the Southern District of Florida entered an order[1] to reduce a chapter 13 debtor’s attorney’s fee application by more than 70 percent. The order provides a detailed analysis of the Court’s review of the limited case law on fee awards in Chapter 13 cases, as well as an in depth explanation by the Court of the basis for the fee reduction and ultimate award in the case before it. The Order also contains strong words for the fee applicant regarding his application and billing practices.
On May 18, 2016, the U.S. Bankruptcy Court for the Northern District of Texas issued a 51-page opinion resolving its Order Setting Show Cause Hearing (the “show cause order”) in the chapter 13 case of Netoche Brigham Fair (the debtor, or “Ms.
A critical issue for all attorneys who represent debtors in bankruptcy is how to ensure payment for services performed both prior to and after a bankruptcy filing. One way that attorneys seek to secure payment for post-petition services is by obtaining an “advance fee retainer” that is earned in full upon receipt and thus arguably never becomes property of the debtor’s estate and can be used to fund post-petition services.
Professional fees are increasingly a hot-button issue in bankruptcy cases. This article examines three recent ongoing, high-profile bankruptcy cases that reflect the growing scrutiny of professional fees: Caesars Entertainment Operating Co. Inc., et al.,[1]SunEdison Inc., et al.[2] and Sabine Oil & Gas Corp., et al.[3]
