Business Reorganization

Approving a retainer after the fact was a sensible exercise of the court’s discretion when the new lawyer’s services were necessary to avoid dismissal of the Subchapter V case.

Court :

New York Northern District

‘Serious Concerns’ About a Conflict Aren’t Enough to Disqualify a Trustee’s Counsel

A firm wasn’t disqualified when attorneys who left the firm long ago had represented an adversary in a possibly similar engagement.

Court :

11th Circuit

Florida

Florida Southern District

Debtor Granted Absolution for a 10-Day Delay in Serving a $40 Million Preference Suit

Although there wasn’t ‘good cause’ to excuse late service of a summons and complaint, the bankruptcy court salvaged a large preference by exercising discretion and granting a 10-day expansion of the 90-day deadline.

Court :

2nd Circuit

New York

New York Southern District

Comparative Fault Doesn’t Require Reduced Attorneys’ Fees for Discharge Violations

Seventh Circuit holds that comparative fault requires a reduction in compensatory damages for a discharge violation but not for a debtor’s attorneys’ fees.

Court :

7th Circuit