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?
The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.
Anything less than full disgorgement must be supported by ‘sound reasons’ and ‘solid evidence,’ the Tenth Circuit says.
The UCC protects retainers in the hands of lawyers from secured lenders bent on glomming their collateral.
The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.