A critical issue for all attorneys who represent debtors in bankruptcy is how to ensure payment for services performed both prior to and after a bankruptcy filing.
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Professional fees are increasingly a hot-button issue in bankruptcy cases. This article examines three recent ongoing, high-profile bankruptcy cases that reflect the growing scrutiny of professional fees: Caesars Entertainment Operating Co.
In Hoover v. Harger (In re Jones),[1] the Bankruptcy Appellate Panel for the Sixth Circuit considered an appeal from an attorney who was sanctioned sua sponte by the Northern District of Ohio’s bankruptcy court and ordered to pay opposing counsel’s attorney fees.
It has become increasingly common for companies to use nonattorneys in attorney roles for the purpose of cutting costs. However, occasionally these “fee-saving” measures actually end up costing a company even more than if they had an attorney do the work in the first place.
In Baker Botts L.L.P. v. ASARCO,[1] the Supreme Court held that under § 330(a)(1) of the Bankruptcy Code, estate professionals are not entitled to payment of fees and expenses incurred in connection with the defense of such professional’s fee applications.
Lawyers focusing on corporate bankruptcy matters, especially those who work at firms with a large national presence, often represent clients throughout the country and are commonly admitted to practice in more than one jurisdiction. Further, bankruptcy attorneys often blend their practice with bankruptcy court litigation and out-of-court restructuring and transactional matters.
After a significant amount of litigation including an appeal, remand and trial over a two-year period, the bankruptcy court overseeing In re River Road Hotel Partners LLC[1] ultimately determined that FBR Capital Markets & Co., located in Arlington, Va. (FBR), was entitled to payment of its restructuring fee of $2,666,965.73 and expenses of $12,179.01.
Lawyers focusing on corporate bankruptcy matters, especially those who work at firms with a large national presence, often represent clients throughout the country and are commonly admitted to practice in more than one jurisdiction. Further, bankruptcy attorneys often blend their practice with bankruptcy court litigation and out-of-court restructuring and transactional matters.
After a significant amount of litigation including an appeal, remand and trial over a two-year period, the bankruptcy court overseeing In re River Road Hotel Partners LLC[1] ultimately determined that FBR Capital Markets & Co., located in Arlington, Va.
During 2015, the Ethics & Professional Compensation Committee offered three opportunities for ABI members to learn about timely and interesting ethical and compensation issues facing professionals in the bankruptcy arena. At the Annual Spring Meeting, we paired with the Bankruptcy Litigation Committee to explore the inner-workings of “Trustee Selection in Commercial Bankruptcy Cases: Who