Venue/Jurisdiction

First Nixing $240,000 for Contempt, Fifth Circuit Approves $450,000 for Civil Contempt

Having previously set aside a $240,000 sanction as criminal contempt, the Fifth Circuit affirmed $450,000 in civil contempt against the same contemnor in the same bankruptcy case.

Working with Local Counsel in Chapter 11 Cases 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). 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). Business Tim Anzenberger tim.anzenberger@arlaw.com Adams and Reese LLP

Aug 2024

Discharge Injunction Violations Can’t Be Heard in Federal District Court

Circuits are split on whether claims for contempt of the discharge injunction must be brought in the bankruptcy court that issued the discharge.

Post-Confirmation/Post-Sale Jurisdiction

Early Edition with Bill Rochelle

Supreme Court Says that Insurance Neutrality Doesn’t Deprive an Insurer of Standing

Reversing the Fourth Circuit, the Supreme Court gives a flexible interpretation to traditional notions of constitutional standing in bankruptcy cases and appeals.

Sub V Trustee Lacks Standing to Pursue an Adversary Proceeding for the Debtor

Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.

Belated Seventh Circuit Opinion May Set Up ‘Cert’: Is Section 505(a) Jurisdictional?

Seventh Circuit again holds that Section 505(a) doesn’t confer jurisdiction for bankruptcy courts to decide how much debtors owe in taxes.