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Ethics

Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction

Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).

Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13

Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.

District of Columbia Rejects the Jewel Doctrine, Joining California and New York

Lawyers leaving a bankrupt firm are not required to pay over profits on hourly matters they take to their new firms.
Court: 

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

Another Court Approves an Arrangement for Paying Most Chapter 7 Fees After Filing

Careful drafting and copious documentation are required for a bifurcated fee arrangement to pass muster in chapter 7.

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