Professional Compensation/Fees

Disgorgement Was the Remedy for Failure to Disclose a Post-Petition Retainer

Disclosing a post-petition retainer in a monthly operating report wasn’t a substitute for disclosure required by Rule 2016(b)(2).

Liquidating Trustee Ousted for an Undisclosed Litigation Funding Agreement

The pricey litigation funding agreement had not been disclosed to creditors before confirmation.

Paying a Post-Petition Retainer Without Advance Approval Was Ok

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.

‘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.

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bankruptcy cases understand the importance of disclosing and avoiding conflicts as a retention condition.[1] A recent unpublished decision by the United States Bankruptcy Court for the Northern District of Texas[2] highlights that even after a professional is retained in a bankruptcy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.[

Supreme Court Update

The Case for Standing Chapter 13 Trustee Fee Retention in Pre-Confirmation Dismissals

Aug 2025

Financing the Case: Recent Developments in DIP and Exit Financing