Ethics

A Promise Not to Enforce a Judgment Meant There Was No Discharge Violation

The inability to modify a Section 524(a) discharge put the Ninth Circuit BAP in a bind.

‘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.

There’s Reciprocal Fee-Shifting in California When a Contract Has Unilateral Fee-Shifting

In California, bringing litigation with a marginal possibility of success could be a bad bet whenever a contract permits one side to recover attorneys’ fees.

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.

Frustration and Fallout: The Consequences of an Untimely Withdrawal of a Motion for Rule 11 Sanctions

Judge Rodriquez of the U.S. Bankruptcy Court for the Southern District of Texas issued an opinion in December 2024 which reinforced the axiom that actions have consequences.[1] In re Garcia Grain Trading Corp. v. Plascencia.[2] Specifically, Judge Rodriquez determined that the bad faith of a defendant movant justified fee-shifting and directed the plaintiff’s counsel to submit a fee application for their related work, which remains under advisement.

The Importance of Managing and Disclosing Potential Conflicts Post-Petition

Professionals seeking to be retained in bankruptcy cases understand the importance of disclosing and avoiding conflicts as a retention condition.[1] A recent unpublished decision by the United States Bankruptcy Court for the Northern District of Texas[2] highlights that even after a professional is retained in a bankruptcy case, professionals must closely monitor and disclose potential conflicts, as post-petition conflicts can result in a reduction or denial of fees.[

Generative AI and the Restructuring Professional: Practical Uses, Ethical Risks, and How Not to Get Sued by Skynet

State Bar Disciplinary Proceedings Aren’t Barred by the Automatic Stay or Discharge

A BAP decision raises the question of whether Ninth Circuit authority has been implicitly overruled by Supreme Court decisions.

Sale of a Debtor’s Claim Was Champertous and Void, Fifth Circuit Says

Selling a debtor’s claims must be structured to avoid champerty under state law.

Ethics Panel