Special Counsel with an Actual Conflict Faces Disgorgement of Fees in Delaware

Judge Sontchi set aside a prior order preventing the trustee from controlling litigation brought in the trustee’s name.

Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation

Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.

Although Unusual, Postpetition Retainers Are Permissible, Chicago Judge Says

The possibility that interim compensation allowances can be disgorged means that counsel won’t have an undue advantage over other administrative creditors, Judge Cleary says.