Professional Compensation/Fees

Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions

Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).

For an Individual Chapter 11 Debtor, the Usual Retention Rules Don’t Always Apply

When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.

‘Evergreen’ Retainers Are Ok Only in ‘Exceptional’ Sub V Cases, Judge Gunn Says

Washington, D.C.’s Judge Gunn describes the procedures to employ for approval and operation of an ‘evergreen’ retainer in chapter 11.

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal

Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’

The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award

A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.

Fifth Circuit Arguably Expands the Barton Doctrine’s Ultra Vires Exception

A receiver was tagged $45,000 for failing to turn over estate property by demanding payment of administrative fees.

The Ethics and Professional Compensation Committee had another successful year in 2024. Our activities continued to keep our members and the insolvency community apprised of relevant recent developments and hot topics while also offering fun and beneficial social and networking opportunities.