Professional Compensation/Fees

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.

Eleventh Circuit Narrowly Reads a State Fee-Shifting Statute

The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.

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.

Bifurcated Fee Arrangements in Chapter 7 Bankruptcies: Avoiding the Ethical Pitfalls

A Suit to Impose a Prepetition Policy Didn’t Violate the Automatic Stay, District Judge Says

Seeking attorneys’ fees from the debtor did not by itself make a postpetition lawsuit subject to the automatic stay.

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.

A Trustee Receives Statutory Commissions Unless the Amount Is ‘Offensive’

A trustee’s commissions can’t be based on a percentage of disbursements to the trustee’s own counsel, so says a New Jersey district judge.

Two Opinions on Disallowance of Compensation After Appointment of a Trustee

‘Conflict preemption’ bars retaliation by a professional whose fees are disputed.

Three Circuits Now Require Refunds for Overpayment of U.S. Trustee Fees

The government has filed a petition for certiorari raising the question of whether refunds are the proper remedy following the Supreme Court’s Siegel decision finding that the 2018 increase in U.S. Trustee fees was unconstitutional.

Two Circuits Now Hold: ‘13’ Trustees Aren’t Paid if Cases Dismiss Before Confirmation

The Ninth and Tenth Circuit disallow fees to chapter 13 trustee if the case is dismissed before confirmation. The identical issue is sub judice in the Second Circuit.