Ethics And Professional Compensation Committee


Post date: Thursday, August 13, 2015

In light of the Third Circuit’s recent decision in In re Prosser,[1] bankruptcy practitioners in the Third Circuit (which includes the highly trafficked District of Delaware) should have a heightened awareness of the line between zealous advocacy and abusive and vexatious conduct.

Post date: Thursday, August 13, 2015

For consumer debtor attorneys, getting paid has become quite a challenge. A debtor’s attorney must either get paid pre-petition in a chapter 7, diminishing what would otherwise be nonexempt property of the debtor, or get paid out of “projected disposable income” in a chapter 13.

Post date: Thursday, May 28, 2015
Photo of John F. Theil
John F. Theil

On March 13, 2015, on remand from the Fifth Circuit, the U.S. Bankruptcy Court for the Western District of Texas allowed a trustee’s claim for a foreclosure commission under 11 U.S.C. § 502, but the court denied the mortgagee’s § 502 attorneys’ fees claim.[1] Both claims had previously been found unreasonable under § 506.

Post date: Thursday, May 28, 2015
Photo of C.R. “Chip” Bowles Jr.
C.R. “Chip” Bowles Jr.

[1]Bankruptcy professionals work in an area that, by its very nature, makes the fee process lengthily transparent, subject to rigorous oversight and, in some cases, highly contentious. Even if fees are awarded, collecting them can be difficult. In a few (thankfully) rare cases, even after fees have been awarded and paid on an interim basis, the bankruptcy case becomes administratively insolvent and the professionals may have to disgorge their previously paid fees.[2]

Post date: Thursday, May 28, 2015
Photo of Edward E. Neiger
Edward E. Neiger

In a recent decision,[1] the U.S. Bankruptcy Court for the Northern District of California granted an adversary proceeding for the defendant’s motion for allowance and payment of a secured claim for attorneys’ fees incurred defending the adversary proceeding. While this may be just an isolated case, the decision could mark the start of a new wave of defendants prophylactically crafting contracts with attorneys’ fees provisions related to adversary proceedings, and attempting to enforce them.

Post date: Thursday, May 28, 2015
Photo of Troy T. Taylor
Troy T. Taylor

In the U.S. and in most developed countries, adherence to ethical standards is the accepted business practice. This is not the case in many developing markets, however. Consequently, ethical dilemmas can arise between conflicting standards. It is therefore important to educate clients and their stakeholders about the long-term financial benefits of avoiding ethical pitfalls in their international business dealings.

Post date: Friday, February 13, 2015

At times, it is necessary to hire special or co-counsel in a bankruptcy case when the case involves matters that are beyond the expertise of debtor’s counsel, such as tax law or personal-injury litigation. These employments can run afoul of the Bankruptcy Code if the applications to hire and payment of attorney fees are not handled in an appropriate manner.

Post date: Friday, February 13, 2015

Rule 1.1 of the Model Rules of Professional Conduct requires that all lawyers provide “competent representation to a client.” In August 2012, the ABA added new language to Model Rule 1.1, comment 8:

To maintain the requisite knowledge and skill, a lawyer should keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology, engage in continuing study and education and comply with all continuing legal education requirements to which the lawyer is subject. (new language in italics).

Post date: Tuesday, September 30, 2014

Two recent opinions — one from the Lehman Brothers case and the other from the Spansion case — provide new guidance on whether individual committee members and unofficial committees may request attorneys’ fees on the basis of substantial contribution.

Post date: Tuesday, September 30, 2014

Section 330 of the Bankruptcy Code permits a court to authorize reasonable compensation for actual and necessary services. Courts within the Fifth Circuit are bound by In re Pro-Snax Distributors Inc., which held that services are compensable under § 330, but only if the applicant proves that the services resulted in a benefit to the bankruptcy estate.[1] A recent decision by a panel of the Fifth Circuit demonstrates that Pro-Snax continues to be binding precedent, but the panel took the extraordinary step of unanimously recommending that the Fifth Circuit revisit Pro-Snax en banc.[2]


Mr. Timothy James Anzenberger
Adams and Reese LLP
Ridgeland, MS
(601) 292-0715

Ms. Sarah Primrose
King & Spalding
Atlanta, GA
(404) 572-2734

Mr. Carson Heninger
Communications Manager
Greenberg Traurig, LLP
Salt Lake City, UT
(801) 478-6914

Ms. B. Summer Chandler
Education Director
LSU Paul M. Hebert Law Center
Panama City Beach, FL
(404) 307-2754

Mr. Adam D. Herring
Newsletter Editor
U.S. Department of Justice
Atlanta, DC
(202) 834-3482

Ms. Victoria A. Guilfoyle
Special Projects Leader
Blank Rome LLP
Wilmington, DE
(302) 425-6400

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