The McDermott International bankruptcy plan had already been confirmed by the time the hearing was held on the retention applications described herein.[1] The Honorable David R.
The U.S. Bankruptcy Court for the Southern District of Alabama recently issued a reminder for all attorneys trying to ensure payment for their work.[1] The warning? Exercise a little common sense, practice a little professional courtesy, and don’t jump right into litigation.
Section 523(a)(7) excepts from bankruptcy discharge a debt “to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss.”[1] The law is clear that restitution payments constitute debts excepted from discharge under Section 523(a)(7).[2] Indeed, the Supreme Court has held that a restitution obligation imposed in a criminal proceeding is not subject to discharge in a chapter 7 proceeding.
COVID-19 has catapulted us into a world in which virtually all legal services are conducted online. Ethics rules require lawyers to maintain competence, and many states require lawyers to stay abreast of relevant technology. Rules of ethics and professional conduct generally do not impose greater or different duties upon practitioners operating online than those attorneys practicing in a traditional office environment, but the rules may have different implications in a virtual environment.
The coronavirus pandemic has forced millions of workers to work remotely — resulting in a drastic increase in videoconferencing.
Courts rarely grant motions for reconsideration, but the U.S. Bankruptcy Court for the District of Delaware did just that in the context of fee-shifting sanctions in In re NNN 400 Capital Center 16, LLC.[1] While the court ultimately upheld the sanctions, it provided a thorough analysis of a court’s ability to shift fees.
According to the U.S. Bankruptcy Court for the Western District of Oklahoma, if pre-petition attorney’s fees are included in the mortgage creditor’s proof of claim, contemporaneous time records are required to establish the reasonableness of those fees.
In order for a trustee to surcharge expenses under § 506(c), he “must prove that [his] expenses were reasonable, necessary, and provided a quantifiable benefit” to the secured creditors property.[1] The trustee must show some benefit sufficient for surcharge under this objective test, identify the specific expenses, tie them to specific collateral, and provide evidence of a benefit that considers the use of the U.S.