Lender’s Attorneys Paid Twice the Debtor’s Counsel Fees

January 12, 2024

Lender’s Attorneys Paid Twice the Debtor’s Counsel Fees

Unnecessarily holding the lender’s feet to the fire resulted in the allowance of attorneys’ fees to the lender that were twice the debtor’s counsel fees.

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Opinion Link

View Opinion

https://abi-opinions.s3.amazonaws.com/Damon+Capital.pdf

Case Details

Case Citation

In re Damon Capital Ltd., 23-10063 (Bankr. W.D. Tex. Jan. 3, 2024)

Case Name

In re Damon Capital Ltd.

Case Type

Business

Court

5th Circuit

Texas

Texas Western District

Bankruptcy Tags

Professional Compensation/Fees

Business Reorganization

Comments

Submitted by EBOLTZ@JOHNORCU... on January 12, 2024 - 09:30

Lesson #1 learned: Don’t bust the chops of a fully secured lender who’s armed with a fee-shifting clause in the loan agreement. Lesson #2 already known: Don't worry about busting the chops of debtors, even when they're armed with fee shifting statutes in oft disregarded consumer protection laws.

Submitted by DWADSWORTH@WGWC... on January 12, 2024 - 10:11

A January 5, 2024 opinion from the Colorado bankruptcy court in In re Sirios, Case No. 20-16709 (Docket No. 262), provides a nice contrast to the Damon Capital case. In the Sirios case, the court substantially reduced a lender's attorneys' fees.