In re Kimberly Nifong Mitchell, Case No. 11-08880-8-ATS (Bankr. E.D.N.C. Sept. 20, 2013), is a chapter 11 case involving the law firm of Oliver, Friesen, Cheek PLLC (OFC) and Bankruptcy Code §§ 503(b)(1)(A) and 507(a)(2). OFC was disqualified due to an undisclosed potential conflict of interest between two of its clients.
In In re Rowe,[1] the court considered the propriety of deviating from the percentage compensation set forth in Bankruptcy Code § 326(a) based on the chapter 7 trustee’s failure to perform as required. This case illustrates the effort needed to reconcile the tension between recognizing the trustee’s fee as a “commission” calculated by the formula set forth in § 326(a) and the court’s directive to award “reasonable” compensation to trustees and other professionals.
On March 15, 2011, the Supreme Court of Montana approved amendments to its Rules of Civil Procedure (MRCP), effective Oct.
This edition of the Ethics and Professional Compensation Committee newsletter marks the first edition from the new leadership. Richard Carmody of Adams & Reese has done an amazing job as our newsletter editor, and we would be remiss not to thank him for his work. Thanks, Richard! John Weiss with Alston & Bird's New York office has stepped in as the newsletter editor and is off to a running start with his first edition.
A ruling that an entity lacks standing in a bankruptcy case is usually a frustrating development that means that the party will not have the opportunity to be heard on a matter that may have negative consequences for it. In Savage Associates PC v. K & L Gates LLP (In re Teligent, Inc.), [1] the absence of standing in the bankruptcy case actually produced a favorable outcome for a law firm that later had to defend a malpractice suit in another court.
Creditors and parties in interest frequently file objections to bankruptcy professionals’ fee requests incurred during the case. According to the U.S. Trustee’s Annual Report of Significant Accomplishments for FY 2009, [1] the U.S. Trustee alone filed 511 objections to the allowance of professional fees in 2009 (the last year reported as of the date of this article), and 91.9 percent of which were successful, lowering the total amount of fees awarded in those cases by $28,524,879.
The Ninth Circuit recently upheld a motion for sanctions against an attorney and his law firm for improperly removing a case. This raises the question of whether there is a trend of courts developing less tolerance for aggressive litigation tactics or whether this was an isolated incident where the facts justified the application of sanctions at any period of time.
The Bard of Avon expressed a variety of views on the legal profession.
On Dec. 2, 2009, perceptive lawyers may have noticed a small disturbance in the force.