Since they weren’t bankruptcy lawyers, the firm wasn’t disqualified for the first nondisclosure offense. The second time, Delaware’s Judge Dorsey ordered disqualification and disgorgement
Will there be occasions where the government must pay a debtor’s counsel’s fees when a U.S. Trustee unsuccessfully opposes a debtor’s initiative?
When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.
Anything less than full disgorgement must be supported by ‘sound reasons’ and ‘solid evidence,’ the Tenth Circuit says.
The Seventh and Ninth Circuits may not be on the same page when it comes contempt citations falling under the Section 362(b)(4) exception to the automatic stay.