Ethics

Bankruptcy Courts in Colorado and Minnesota Bar Bifurcated Fee Arrangements

Local rules require lawyers to prepare and fill all required chapter 7 papers regardless of whether the debtor pays the fee or agrees to pay the fee.

Bankruptcy Didn’t Block Contempt Proceedings in District Court Against a Debtor

In a case headed for the Tenth Circuit, upholding the dignity of the court overcame the automatic stay.

The Benefits and Ethical Concerns of Nonlawyer Fee-Sharing

July 2022

Second Circuit Allows Appellate Attorneys’ Fees for Upholding a Contempt Citation

Finally, a circuit court cites Taggart to help a debtor enforce the discharge injunction.

Denial of Receipt by Itself Won’t Defeat the ‘Mailbox Presumption,’ District Judge Says

Special counsel unfamiliar with bankruptcy procedures weren’t excused from the requirement to file a final fee application by the deadline.

How and Why We Avoid Conflicts of Interest: The Relevance of Conflict Checks in Turnaround Work

From its inception, the National Ethics Task Force [1] was charged with answering the question of whether there is a need for national ethics rules, standards and general practice guidance in the bankruptcy context.

Co-Chairs Corner

The Ethics and Professional Compensation Committee had an active 2021, and we are excited to carry that energy into 2022.

Last year, the committee paired with the Mediation Committee at the Annual Spring Meeting to put on When Mediation Gets Messy: Ethical Dilemmas. This panel addressed hypothetical mediation scenarios, including situations raising difficult ethics questions. The panel was well attended and enjoyed by all.

Uncommon and Controversial, Are Post-Petition Retainers Authorized Under the Bankruptcy Code?

Bankruptcy courts have not always favored post-petition retainers to debtor’s counsel. [1] But does the Bankruptcy Code prohibit them? That is exactly the question Judge David D. Cleary answered in In re Golden Fleece Beverages Inc., in which he held that the Code indeed supports post-petition retainers. [2]

Fifth Circuit Clarifies Scope of Permissible Compensation of Estate Professionals Under 11 U.S.C. § 330(a)

On January 14, 2022, a three-judge panel of the Fifth Circuit in In the Matter of Sharon Sylvester (Sylvester vs Chaffe McCall LLP) held that a trustee’s attorney is entitled to compensation under Bankruptcy Code § 330(a) “only for services requiring legal expertise that a trustee would not generally be expected to perform without an attorney’s assistance.” [1]