Ethics

Contesting the Election of a ‘Permanent’ Trustee Is Compensable, Judge Goldblatt Says

Contesting the election of a chapter 7 trustee isn’t like defending a fee application, which Baker Botts held to be noncompensable.

A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity

The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.

Four Circuits Agree: Debtors Get Refunds for Overpayment of U.S. Trustee Fees

With four circuits in agreement, the Supreme Court isn’t likely to grant cert to rule on whether chapter 11 debtors are entitled to refunds for overpayment of U.S. Trustees fees that were held unconstitutional in Siegel.

Hot Topics and Ethical Issues in Consumer Cases

Can You Chat with a Bot About a Client’s Matter Without Revealing Client Information?

AI chatbots like OpenAI’s ChatGPT clearly have the potential to become useful tools in a lawyer’s toolbox. Of course, lawyers using AI chatbots, like lawyers using any other tools, must be mindful of their ethical obligations, including not only the duty to verify the accuracy of the results of legal research, but also the duty to maintain client confidentiality. In considering what client information can be used in prompting a chatbot, Rule 1.6 of the ABA’s Model Rules of Professional Conduct provides guidance, but not a bright-line rule.

Ethical Implications on the Use of AI in Legal Practice

Section 105(a) Doesn’t Give Rise to a Private Right of Action for Abuse of Process

With claims for abuse of process not available in a bankruptcy case, the offended party must pursue contempt or other sanctions created by the Bankruptcy Code, a California district judge says.

Section 959(a) Isn’t an Exception to the Barton Doctrine, 9th Circuit BAP Says

Section 959(a) doesn’t permit suing a trustee for breach of fiduciary duty outside of bankruptcy court.