Professional Compensation/Fees

Lawyer Hit with $47,000 in Sanctions for Filing Fictitious Schedules

A lawyer was found to have committed fraud on the court for filing schedules claiming ownership of property that another court had found not to be the debtor’s property.

Judges Plead with Congress to Fix the Mess Created by Lamie

Sitting en banc, three judges in St. Louis effectively barred bifurcated fee arrangements in the Eastern District of Missouri.

District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees

Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.

Barton Doctrine Protected a Receiver from an Automatic Stay Violation

The district court properly reversed and dismissed for lack of subject matter jurisdiction under Barton.

Bankruptcy Courts Have Jurisdiction and Power to Compel Payment of Counsel Fees

The Ninth Circuit BAP says that 28 U.S.C. § 1334(e)(2) gives bankruptcy courts exclusive jurisdiction with regard to disputes over fee allowances.

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.

Winter

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?