Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim
Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.
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Session Description
Parties in large, complex bankruptcy cases routinely retain local counsel when that party's primary counsel has no office or attorneys licensed in a particular venue. Local counsel can provide critical support in these cases--to creditors, committees, groups, and debtors--including having local knowledge, well-formed relationships in the venue, and familiarity with other professionals and the court.
But hiring local counsel can present myriad issues with retention, compensation, and, in particular, ethics. Many courts have strict rules on hiring local counsel, including some jurisdictions that require local counsel to play a substantive role in the case (as opposed to simply signing/filing pleadings), including attending all depositions and hearings. There may be many landmines waiting for both local and outside counsel, depending on the jurisdiction.
This panel would discuss the benefits of local counsel, things to avoid, and ethical/compensation related issues. The panel could consist of an attorney that often serves as local counsel, an attorney that often hires local counsel as outside counsel, and a judge that frequently sees retention of local counsel (to provide that judge's views on what works, what doesn't, and things to avoid).
But hiring local counsel can present myriad issues with retention, compensation, and, in particular, ethics. Many courts have strict rules on hiring local counsel, including some jurisdictions that require local counsel to play a substantive role in the case (as opposed to simply signing/filing pleadings), including attending all depositions and hearings. There may be many landmines waiting for both local and outside counsel, depending on the jurisdiction.
This panel would discuss the benefits of local counsel, things to avoid, and ethical/compensation related issues. The panel could consist of an attorney that often serves as local counsel, an attorney that often hires local counsel as outside counsel, and a judge that frequently sees retention of local counsel (to provide that judge's views on what works, what doesn't, and things to avoid).
Suggested Categories
Learning Outcomes
This panel would discuss the benefits of local counsel, things to avoid, and ethical/compensation related issues. The panel could consist of an attorney that often serves as local counsel, an attorney that often hires local counsel as outside counsel, and a judge that frequently sees retention of local counsel (to provide that judge's views on what works, what doesn't, and things to avoid).
Target Audience
Business
First Name
Tim
Last Name
Anzenberger
Email
tim.anzenberger@arlaw.com
Firm
Adams and Reese LLP
Supreme Court Won’t Decide Whether ‘13’ Trustees Are Paid When Plans Aren’t Confirmed
Any day now, the Second Circuit could create a split of circuits importuning the Supreme Court to decide whether chapter 13 trustees are paid fees even if no plan is confirmed.
Shareholder Standing Scrutinized in a Case that Presages Truck Insurance
Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?
Bankruptcy Judge Chops a Fully Secured Lender’s Fee Request by 60%
A fully secured lender’s lawyer doesn’t have a ‘blank check’ to overwork a case, Bankruptcy Judge Kimberley Tyson says.
Congress Must Act to Permit Chapter 7 Debtors to Pay Counsel After Filing
Bifurcated fee arrangements are cumbersome, temporary fixes for a problem that the Supreme Court created in Lamie.
Courts May Create Trust Accounts to Pay Sub V Trustees and Other Admin Expenses
The court can’t require a debtor to give a ‘retainer’ to a Subchapter V trustee, Judge Pearson says.
Reference Withdrawal on Houston Ethics Probe Pits UST Against Bankruptcy Judge
Despite consent by the firm to withdraw the reference of motions to disgorge its fees, a bankruptcy judge in Houston recommended against withdrawal to district court and against transfer to another district.
Law Firm Faces Lawsuit over Texas Bankruptcy Judge Saga
Kirkland & Ellis has been sued for allegedly profiting from an undisclosed romantic relationship between a Houston bankruptcy judge and a local bankruptcy lawyer, a relationship that ultimately caused the judge to resign, Reuters reported. Plaintiff Michael Van Deelen, whose October lawsuit led former U.S. Bankruptcy Judge David Jones to publicly acknowledge a romantic relationship with bankruptcy attorney Elizabeth Freeman, expanded his lawsuit Thursday to add Freeman, her former law firm Jackson Walker, and Kirkland & Ellis as defendants. Van Deelen alleged that Kirkland profited from Jones and Freeman's relationship by frequently teaming up with Jackson Walker, which served as local counsel, to represent debtors in Jones' court, knowing that Jones would give favorable treatment to the law firm that employed his girlfriend. Van Deelen said that Kirkland and the other defendants "deliberately concealed" the relationship in order to continue placing their cases in front of a friendly bankruptcy judge. Kirkland said Friday that Van Deelen's allegations against the firm were "baseless and false."
